Problem Assume Buyer Going Buy Single Item Foursuppliers Meet Demand 1500 Units Suppliers Q35607534

In this problem, we assume that a buyer is going to buy a singleitem from foursuppliers to meet its demand that is 1500 units. Thesuppliers offer different wholesale prices that are $10, $11, $12and $13, respectively. They also produce defective item and thepercentage is 2% for the first supplier, 1.5% for the secondsupplier, 1% for the third supplier, and 0.5% for the forthsupplier. Production capacity for all the suppliers is 1000units.

Assume that the buyer wants to minimize its purchasing cost. UseSolver to solve the problem for this case: acceptable number ofdefective items is less than 30 units.

This problem is similar to the problem we solved in theclass.

In this problem, you want to:

  1. minimize the purchasing cost

  2. meet the demand

  3. incorporate the suppliers’ production capacityinto your calculation

  4. keep number of defective items less than 30units