![QUESTION TWO in an environment where both temperature and humidity can be controlled. Emery uses 800 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $50 per order. The cost schedules of two suppliers are as follows: a) Emery Pharmaceuticals uses an unstable chemical compound that must be kept at Vendor 1 Quantity 1-499 500-999 1000+ Pricellb (5) 17.00 16.75 16.50 Vendor 2 Quantity 1-399 400-799 800-1199 1200+ Price/lb ($) 17.10 16.85 16.60 16.25 What quantity should be ordered, and which supplier should be used? i) ii) What factor (s) should be considered besides cost? ii) Discuss the pros and cons of holding inventory [10 Marks) [5 Marks] [10 Marks] TOTAL-25 MARKS](https://media.cheggcdn.com/media%2Fc8a%2Fc8a6be6f-6a12-43b1-8d5a-37759c32902c%2Fimage.png)
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(Answered) : Question Two Environment Temperature Humidity Controlled Emery Uses 800 Pounds Per Month C Q32730577
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