Mountain tent company orders one of its main components from three suppliers. the amount ordered from supplier a is 144,000/year, from supplier b is 86,400/year, and from supplier c is 12,000/year. during year 2002, mountain tent company used an independent eoq policy for ordering from each of the three suppliers with a fixed ordering cost $800 plus a supplier-dependent shipping cost with $200/order with supplier a, $60/order with supplier b and $120/order with supplier c. the holding cost is h=$30/(unit, yr). calculate the total annual operation cost (all ordering and inventory holding costs) based on the eoq policy for year 2002. the company is thinking to consolidate the supply base by sourcing the total amount only from supplier b, how much the company may save annually in operating costs if the consolidation is taken?

For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.