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Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters to the
Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters to the occasional fixer-upper who would prefer to get the job done fast rather than investing in a well-appointed tool box. Weekend Projects wants to find a supplier for a particular tool set that promises to be a big seller. Expected annual sales are 100,000 units (D) Weekend's warehouses operate 50 weeks a year. Management collected data on the two suppliers, which are contained in the table below: Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Supplicr Bradley Alexander 30,000 $27,000 $17,000 $7.15 Annual Administrative Cost $10,000 $10,000 10,000 25,000 50,000 Cost/Unit (H) $1.43 $1.43 (wks) $35,000 $25,000 $18,000 $7.15 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? units is the lowest cost alternative, with annual total costs to Weekend Projects of $ (Enter your response as an integer. total costs to Weekend Projects of sEnter your response as an integer Using Bradley and a shipping quantity of 10,000
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