A supermarket which is open for 300 days in a year observes an annual demand of 42,000 units year for a favorite food item Daily demand of this product is normally distributed with a mean of 140 units and a standard deviation of 40 units which is independent from the distribution of lead time caused by the supplier The following table provides the information on the offers received from two potential suppliers of the product (lead times are normally distributed with the stated parameters) Supplier A Supplier B Unit cost($ unit) 28 24 Fixed order cost ($ order) 750 1000 Lead time average (days) 12 10 Lead time standart deviation (days) 4 5 Inventory holding cost ratio of the company is 20 Since the supermarket is located in a region with several other stores, the demand which cannot be covered on time is lost to competitors Therefore, the manager wants to achieve a service level per unit (SLu) of at least 95 The manager estimates that 5$ must be spent for advertising to recover each unit of lost demand Based on the given information, determine the supplier which will help the supermarket reach the minimum total annual cost for this food item

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A supermarket which is open for 300 days in a year observes an annual demand of 42,000 units/year for a favorite food item. Daily demand

A supermarket which is open for 300 days in a year observes an annual demand of 42,000 units/year for a favorite

food item. Daily demand of this product is normally distributed with a mean of 140 units and a standard deviation of 40 units which is independent from the distribution of lead time caused by the supplier. The following table provides the information on the offers received from two potential suppliers of the product (lead times are normally distributed with the stated parameters).

	Supplier A	Supplier B
Unit cost($/unit)	28	24
Fixed order cost ($/order)	750	1000
Lead time average (days)	12	10
Lead time standart deviation (days)	4	5

Inventory holding cost ratio of the company is 20 %. Since the supermarket is located in a region with several other stores, the demand which cannot be covered on time is lost to competitors. Therefore, the manager wants to achieve a service level per unit (SLu) of at least 95 %. The manager estimates that 5$ must be spent for advertising to recover each unit of lost demand. Based on the given information, determine the supplier which will help the supermarket reach the minimum total annual cost for this food item.