Question
Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs.
Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation.
Yeast & Brewery Company | Crust n Krumbs Company | ||
Quantity | Unit Price | Quantity | Unit Price |
1-399 | $16.91 | 1-499 | $16.23 |
400-899 | $16.23 | 500-999 | $15.91 |
900+ | $15.69 | 1000+ | $15.69 |
What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units [ Select ] ["267", "253", "238", "242", "255"]
Which supplier, based on all options with regard to discounts, should be used? [ Select ] ["Crust n Krumbs", "Don't know", "Yeast & Brewery"]
What is the optimal order quantity? [ Select ] ["900", "500", "400", "300", "238"]
What is the total annual cost of ordering, inventory holding, and purchasing the strategic ingredient, round to whole number? [ Select ] ["$234,714", "$242,538", "$241,668", "$251,479", "$252,133"]
If the quality of Crust n Krumbs turns out to be superior, which vendor would you select? [ Select ] ["Yeast & Brewery", "Crust n Krumbs", "Don't know"]
What would be the extra cost for the superior quality in choosing Crust n Krumbs, round to whole number? [ Select ] ["$754", "$554", "$654", "$354", "$254"]
The % cost increase in choosing Crust n Krumbs over Yeast & Brewery? By compared to the total cost (ordering, holding & purchasing) from the two suppliers, then calculate the % on the premium paid for the superior quality. [ Select ] ["0.29%", "0.26%", "0.16%", "0.34%", "0.36%"]
Ashlee learned that the actual usage has gone up to 3,000 lbs. per month, what would be the incremental cost annually in choosing Crust n Krumbs. By compared to the total cost (ordering, holding & purchasing) from the two suppliers, based on 3,000 lbs. per month demand. [ Select ] ["$669", "$930", "$597", "$730", "$630"]
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