Question

Assume that two years have passed, and the purchasing agent mentioned in Problem 22 must recompute the optimal number of wafers to purchase and from which source to purchase them. Source B has decided to accept any size offer, but sells the wafers for $2.55 each for orders of up to 3,000 wafers and $2.25 each for the incre- mental amount ordered over 3,000 wafers. Source A still has the same price sched- ule, and Source C went out of business. Now which Source should be used?

Answer 1

The student's question involves a cost analysis to determine the most cost-effective supplier of wafers between Source A and Source B, factoring in Source B's bulk discount.

Step-by-step explanation:

The student has asked a problem related to decision-making in purchasing and involves analyzing the cost-effectiveness of buying options from different sources. With Source B adjusting its pricing policy to $2.55 per wafer for orders up to 3,000 units and a discounted price of $2.25 for additional wafers over this threshold, and Source A maintaining the same pricing as in the original problem, the student must calculate the total cost for a given number of wafers to determine which source offers the best deal.

Since Source C is no longer an option, the decision will be between Source A and Source B. The solution requires the student to perform a cost analysis based on unit prices and total quantities, considering the discounted price offered by Source B for larger orders.