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GetFit is a company that makes high-end exercise machines and the machine Pilates Power is their most popular product. For each production cycle of
GetFit is a company that makes high-end exercise machines and the machine Pilates Power is their most popular product. For each production cycle of the Pilates Power machines, GetFit purchases 5 SKUs: W32A, Y33A, W32B, X33B, and Z32A. There are four suppliers: Supplier A, B, C, and D. The minimum number of units needed in each production cycle and the prices for each unit offered by the suppliers are listed in Table 1a. The maximum total number of units that each company can supply are listed in Table 1b. For example, if Supplier C supplies 15300 pieces of SKU Z32A, it cannot supply anything else. Table 1a. Number of units needed and unit prices (in dollars) offered by the suppliers. Parts Number of units needed Supplier A Supplier B Supplier C Supplier D W32A 39000 500 538 570 566 Y33A 15000 109 108 116 117 W32B 38000 27 28 30 29 X33B 17000 230 225 207 245 Z32A 22000 324 354 352 378 Table 1b. The maximum total number of parts that each company can supply Supplier A 54900 Supplier B 9000 Supplier C 15300 Supplier D 54800 The manager at GetFit notices that the suppliers have different levels of service. The levels of service of the companies are listed in Table 2a. The costs per % level of service depends on the SKU, and are listed in Table 2b. The costs and maximum total number of units that can be supplied by each supplier remain the same as in Part 1. Please normalize the costs to Supplier A's level of service (92%) to get the answer. Table 2a. Level of service (%) Supplier A 92 Supplier B 98 Supplier C Supplier D 98 95 Table 2b. Cost per % level of service Cost per % Parts W32A 10 Y33A 2 W32B 1 X33B 3 Z32A 8 Considering the levels of service of the suppliers, what is the minimum total procurement cost for GetFit?
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