Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alpha Medical Manufacturing (AMM), located in Punta Gorda, Florida, produces medical devices for orthopedic surgery including replacement parts for human knees, hips, and elbows, and

image text in transcribed
Alpha Medical Manufacturing (AMM), located in Punta Gorda, Florida, produces medical devices for orthopedic surgery including replacement parts for human knees, hips, and elbows, and surgical tools. One product they assemble in their factory is a special aluminum-alloy surgical screw used to anchor human tissue to the bone. The screw consists of four component parts, one being the aluminum alloy while the other three parts are made of medical grade plastics. AMM is evaluating three Tier 1 suppliers to manufacture the aluminum part of the orthopedic screw. Annual demand for this item is 40,000 units per year, with 365 days in a year. Other information is shown in the table below. a. What is the total annual logistics cost for each supplier when Q=20,000 and Q=40,000 ? Do not round intermediate calculations. Round your answers to the nearest dollar. b. What supplier and order quantity do you recommend based on these total costs? The company should choose and the order quantity of units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these General Management questions

Question

=+d) Create the c chart for this two-week period.

Answered: 1 week ago

Question

Case : Karl and June Monroe

Answered: 1 week ago