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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
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) i Annual Price/Unit Holding Cost/Unit Lead Time (L) Supplier Bradley Alexander 10,000 25,000 50,000 $40,000 $27,000 $17,000 $30,000 $25,000 $18,000 (P) $7.10 $7.10 (H) (wks) Annual Administrative Cost $15,000 $15,000 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? $1.42 4 $1.42 6 Using and a shipping quantity of units is the lowest cost alternative, with annual total costs to Weekend Projects of $(Enter your response as an integer) a. Which of the two suppliers would provide t would you suggest? Using Weeke and a shipping quantity of Enter your respor Bradley Alexander and a shipping quantity of rojects of $(Enter your respon. units is the lowest cost alternativ 25,000 10,000 50,000
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