for KC based on price, but occasionally has to order from TG when KC cannot fill the order.

RCC has recently had problems with the quality and the timeliness of deliveries. When a supplier delivers a load to RCC$,$ it goes through an initial inspection to assure it meets specification. If the load fails the initial inspection, it goes through a secondary

$10$ points

References

References

References

inspection to determine the exact issue. Almost always, the issue can be resolved and the load can be used. The initial inspection costs $$1,088$ per load. A secondary inspection, which is more thorough, costs $$5,075$ per load. If a delivery is delayed, $RCC$ has to hire temporary workers or pay overtime to some employees. The average cost of a delayed load is $$2,075.$

The following are summary statistics from last year's purchases from the two suppliers.

$\backslash$table$[[,\backslash$table$[[$Toorak$],[$Gravel$]],\backslash$table$[[$Kilda$],[$Corp$.]]],[$Number of loads,$100,400],[$Average tons per load,$10,000,5,000],[$Average price per ton,$$6\mathrm{.}00,$$$5\mathrm{.}90$