A hospital treating COVID patients needs to buy gloves, gowns, and masks for the health care professionals working at the facility. The hospital has two suppliers who can supply the items. The cost, and the maximum number of each item each supplier can provide is given below: Supplier A Supplier B Gloves (cost, max units) ($0.30/unit, 20,000) ($0.35/unit, 11,000) Gowns Masks ($2.00, ($2.50, 5000) 10,000) ($1.75, 7000) ($2.55, 9,500) The hospital immediately needs 30,000 units of gloves, 5500 units of gowns, and 12,500 masks. To account for the economies of scale in logistics, the Supplier A has a requirement at least 25,000 units in the order, while Supplier B has a requirement of a minimum order size of 10,000 units and a maximum order size of 20,000. What is is the minimum total cost of order that the hospital needs to pay to the suppliers to get the items?

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter15: Retailing, Direct Marketing, And Wholesaling
Section15.1: L.l.bean: Open 24/7, Click Or Brick
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A hospital treating COVID patients needs to buy
gloves, gowns, and masks for the health care
professionals working at the facility. The hospital
has two suppliers who can supply the items. The
cost, and the maximum number of each item each
supplier can provide is given below:
Supplier A
Supplier B
Gloves (cost, max
units)
($0.30/unit,
20,000)
($0.35/unit,
11,000)
Gowns Masks
($2.00, ($2.50,
5000)
10,000)
($1.75,
7000)
($2.55, 9,500)
The hospital immediately needs 30,000 units of
gloves, 5500 units of gowns, and 12,500 masks. To
account for the economies of scale in logistics, the
Supplier A has a requirement of at least 25,000
units in the order, while Supplier B has a
requirement of a minimum order size of 10,000
units and a maximum order size of 20,000.
What is is the minimum total cost of order that the
hospital needs to pay to the suppliers to get the
items?
Transcribed Image Text:A hospital treating COVID patients needs to buy gloves, gowns, and masks for the health care professionals working at the facility. The hospital has two suppliers who can supply the items. The cost, and the maximum number of each item each supplier can provide is given below: Supplier A Supplier B Gloves (cost, max units) ($0.30/unit, 20,000) ($0.35/unit, 11,000) Gowns Masks ($2.00, ($2.50, 5000) 10,000) ($1.75, 7000) ($2.55, 9,500) The hospital immediately needs 30,000 units of gloves, 5500 units of gowns, and 12,500 masks. To account for the economies of scale in logistics, the Supplier A has a requirement of at least 25,000 units in the order, while Supplier B has a requirement of a minimum order size of 10,000 units and a maximum order size of 20,000. What is is the minimum total cost of order that the hospital needs to pay to the suppliers to get the items?
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