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A global sourcing manager for Delta Automotive wants to compute the total supply chain costs for automobile parts purchased from three different global suppliers. The
A global sourcing manager for Delta Automotive wants to compute the total supply chain costs for automobile parts purchased from three different global suppliers. The data related to the supply chain costs associated with three possible suppliers has been collected in the Microsoft Excel Online file below. The annual demand D is 350,000 units. The supplier prices and transportation costs are predicated on an order quantity of 35,000 units (note that this is not the EOQ.) We may assume that parts are transported from Mexico to the United States by truck, and by a combination of ships and trucks from Japan and China, and 250 working days per year. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Total Supply Chain Cost Analysis Japanese Mexican Chinese Data Procurement cost/unit, P Management oversight cost/unit, O Unit transportation cost, Ct Order cost/order, Co Supplier Supplier Supplier $7.55 $7.70 $6.90 $0.55 $0.75 $1.00 $0.55 $0.45 $0.65 $635.00 $380.00 $940.00 Holding cost per unit, Ch $1.30 $1.30 $1.30 Lead time, L (days) 70 35 90 Annual Demand, D 350,000 Order Quantity. Q 35,000 Working days in a year 250 5 7 8 Average number of orders/year Average daily demand #N/A #N/A Japanese Mexican 9 Cost Calculations Supplier Supplier Chinese Supplier 20 21 22 23 24 25 Total procurement cost Total management oversight cost Total annual transportation cost Annual order cost Annual holding cost Average annual pipeline inventory cost 26 Total supply chain costs 27 28 Lowest Supply Chain Cost #N/A 29 Japanese Mexican Chinese 30 Formulas Supplier Supplier Supplier 31 32 Total procurement cost #N/A #N/A #N/A 33 Total management oversight cost #N/A #N/A #N/A 34 Total annual transportation cost #N/A #N/A #N/A Annual order cost. #N/A #N/A #N/A 35 36 Annual holding cost #N/A #N/A #N/A 37 38 Average annual pipeline inventory cost Total supply chain costs #N/A #N/A #N/A #N/A #N/A #N/A Questions 1. What are the total supply chain cost for each of the suppliers? Round your answers to the nearest dollar. Total Japanese Supplier Mexican Supplier $ 2. Which supplier provides the lowest total supply chain cost? Check My Work Reset Problem Chinese Supplier
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