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Horizon Cellular manufactures cell phones for exclusive use in its communication network Management must select a circuit board supplier for a new phone soon
Horizon Cellular manufactures cell phones for exclusive use in its communication network Management must select a circuit board supplier for a new phone soon to be inbodied to the market. The a requirements (D) are 40,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the following table Annual Freight Costs Shipping Quantity (Q) Price/Unit Supplier 10,000 20,000 (p) Abbott $8.000 $5,000 530 Annual Holding Cost/Unit (H) $6.00 Lead Time: Annual (L) (days) Administrative Cost 4 $8.000 Baker $9.000 $6.500 $29 $5.80 6 $0.000 Carpenter $12,000 $0.500 $28 $5.60 7 $12.000 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? Using and a shipping quantity of units is the lowest cost alternative, with annual total costs to Horizon Cellular ofs Enter your response as an integer)
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