Reference no: EM132438361

A state Agency needs to buy a new furniture. State procurement regulations dictate that the procurement contract shall go to the bidder offering equipment meeting the minimum requirements at the lowest cost: The agency receives the following bids from three competing suppliers.

Supplier         Price         Payment Plan

Supplier A      $185,000       50% down

                               25% in 6 months

                               25% in 12 months

Supplier B     $180,000       50% down

                                50% in 6 months

Supplier C      $200,000       50% in 12 months

After examining the furniture offered in the three bids, the Agency's Procurement Department concludes that all meet the minimum requirements of quality and quantity. The Agency's Accounting Department evaluates the financial aspect of the bids on the basis of monthly interest rates.

Questions:

?????A) Describe the procedure for selecting the supplier

B) Write the equations you would use

C) Describe the method to solve the equations

D) Which supplier you would choose within which range of interests.