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Help answering both parts of the question Show work / Explain The Green Machine Manufacturing Company is also trying to decide which of two suppliers
Help answering both parts of the question
Show work / Explain
The Green Machine Manufacturing Company is also trying to decide which of two suppliers to purchase engines from. Green Machine has agreed to cover the tooling cost for the supplier selected. The relevant information is provided below Carry all calculations out to two decimal places Order lot size Annual demand Engine weight Order processing cost Inventory carrying rate 2,500 units 120,000 units 10 pound:s $100 / order 1% per year Unit Price 1 to 999 units/ order Unit Price 1000 to 2999 units/ order Unit Price 3000units/order Tooling Cost Distance supplier defect rate (% of engine cost) Supplier1 $315.00 $306.00 300.00 $13,500 110 miles 2% Supplier2 $320.00 $309.00 305.00 $10,750 125 miles 196 Truckload (TL 2 40,000 lbs.): $1.05 per ton-mile Less-than-truckload (LTL): $1.75 per ton-mile (Note: per ton-mile 2,000 pounds per mile 5)What is the total cost of ownership for Supplier 1? A) Less than or equal to $36,500,000.00 B Greater than $36,500,000.00 but less than or equal to $36,700,000.00 C) Greater than $36,700,000.00 but less than or equal to $36,900,000.00 D) Greater than $36,900,000.00 but less than or equal to $37,100,000.00 E) Greater than $37,100,000.00 6) What is the total cost of ownership for Supplier 2? A) ess than or equal to $36,500,000.00 B)Greater than $36,500,000.00 but less than or equal to $36,700,000.00 C) Greater than $36,700,000.00 but less than or equal to $36,900,000.00 D) Greater than $36,900,000.00 but less than or equal to $37,100,000.00 E) Greater than $37,100,000.00Step by Step Solution
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