fa B D E F G H A company that produces widgets is looking to outsource a component of widgets. They are evaluating three Tier 1 Suppliers to manufacture the part Annual demand for the item is 60,000 units per year, with 365 days in a year. Other information is shown below. Outsourcing Information for Widgets Contract Manufacturer (Tier 1 Supplier) Cost to Price per Unit Transport Store Price per Unit Tariff Cost Order Costs Mode Cost (T- One Unit @ Q = 90,000 45,000 (TC per Unit (OC) M) per Unit Per Year (CH) $ 2.23 $ 1.98 $ 0.22 $ 0.35 $ 554.00 $ 1.87 $ 2.28 $ 2.05 $ 0.32 $ 0.28 $ 295.00 $ 1.68 $ 1.58 $ 1.35 $ 0.18 $ 0.19 $ 378.00 $ 1.16 Order Lead Time in Days XYZ Supplier ABC Supplier EFG Supplier 110 85 105 365 60,000 30.000 365 60.000 60,000 Operating Days 1 Annual Demand 2 Order Quantity 3 # orders per year 4 Avg daily demand 15 16 Total annual logistics cost: 17 18 Contract Manufacturer 19 (Tier 1 Supplier) 20 21 XYZ Supplier 22 ABC Supplier 23 EFG Supplier 24 25 What supplier should they choose? 26 What quantity should they order? 27 28 29 Order Quantity (0) 30,000 60,000 units B D A company that produces widgets is looking to outsource a component of widgets. They are evaluating three Tier 1 Suppliers to manufacture the part. Annual demand for the item is 60,000 units per year, with 365 days in a year. Other information is shown below. F G H 1 it. 2 3 4 Outsourcing Information for Widgets Cost to Contract Manufacturer (Tier 1 Supplier) Price per Unit Price per Unit Tariff Cost Transport @Q= Store Order Costs Mode Cost (T- One Unit 45,000 @ Q = 90,000 (TC per Unit M) per Unit (OC) Per Year (CH) $ 2.23 $ 1.98 $ 0.22 $ 035 $ 554.00 $ $ 2.28 $ 2.05 $ 0.32 $ 0.28 $ 295.00 $ 168 $ 1.58 $ 1.35 $ 0.18 $ 0.19 $ 378.00 $ 116 Order Lead Time in Days 5 187 110 85 105 6 XYZ Supplier 7 ABC Supplier 8 EFG Supplier 9 o Operating Days 1 Annual Demand 2 Order Quantity 3 # orders per year Avg daily demand 365 60,000 30,000 365 60,000 60,000 Chapter #12 Pro + JX B 60,000 30,000 60,000 60,000 Order Quantity (Q) 30,000 60,000 units A 11 Annual Demand 12 Order Quantity 13 # orders per year 14 Avg daily demand 15 16 Total annual logistics cost: 17 18 Contract Manufacturer 19 (Tier 1 Supplier) 20 21 XYZ Supplier 22 ABC Supplier 23 EFG Supplier 24 25 What supplier should they choose? 26 What quantity should they order? 27 28 29 fa B D E F G H A company that produces widgets is looking to outsource a component of widgets. They are evaluating three Tier 1 Suppliers to manufacture the part Annual demand for the item is 60,000 units per year, with 365 days in a year. Other information is shown below. Outsourcing Information for Widgets Contract Manufacturer (Tier 1 Supplier) Cost to Price per Unit Transport Store Price per Unit Tariff Cost Order Costs Mode Cost (T- One Unit @ Q = 90,000 45,000 (TC per Unit (OC) M) per Unit Per Year (CH) $ 2.23 $ 1.98 $ 0.22 $ 0.35 $ 554.00 $ 1.87 $ 2.28 $ 2.05 $ 0.32 $ 0.28 $ 295.00 $ 1.68 $ 1.58 $ 1.35 $ 0.18 $ 0.19 $ 378.00 $ 1.16 Order Lead Time in Days XYZ Supplier ABC Supplier EFG Supplier 110 85 105 365 60,000 30.000 365 60.000 60,000 Operating Days 1 Annual Demand 2 Order Quantity 3 # orders per year 4 Avg daily demand 15 16 Total annual logistics cost: 17 18 Contract Manufacturer 19 (Tier 1 Supplier) 20 21 XYZ Supplier 22 ABC Supplier 23 EFG Supplier 24 25 What supplier should they choose? 26 What quantity should they order? 27 28 29 Order Quantity (0) 30,000 60,000 units B D A company that produces widgets is looking to outsource a component of widgets. They are evaluating three Tier 1 Suppliers to manufacture the part. Annual demand for the item is 60,000 units per year, with 365 days in a year. Other information is shown below. F G H 1 it. 2 3 4 Outsourcing Information for Widgets Cost to Contract Manufacturer (Tier 1 Supplier) Price per Unit Price per Unit Tariff Cost Transport @Q= Store Order Costs Mode Cost (T- One Unit 45,000 @ Q = 90,000 (TC per Unit M) per Unit (OC) Per Year (CH) $ 2.23 $ 1.98 $ 0.22 $ 035 $ 554.00 $ $ 2.28 $ 2.05 $ 0.32 $ 0.28 $ 295.00 $ 168 $ 1.58 $ 1.35 $ 0.18 $ 0.19 $ 378.00 $ 116 Order Lead Time in Days 5 187 110 85 105 6 XYZ Supplier 7 ABC Supplier 8 EFG Supplier 9 o Operating Days 1 Annual Demand 2 Order Quantity 3 # orders per year Avg daily demand 365 60,000 30,000 365 60,000 60,000 Chapter #12 Pro + JX B 60,000 30,000 60,000 60,000 Order Quantity (Q) 30,000 60,000 units A 11 Annual Demand 12 Order Quantity 13 # orders per year 14 Avg daily demand 15 16 Total annual logistics cost: 17 18 Contract Manufacturer 19 (Tier 1 Supplier) 20 21 XYZ Supplier 22 ABC Supplier 23 EFG Supplier 24 25 What supplier should they choose? 26 What quantity should they order? 27 28 29
