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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 to

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 introduced to the market. The annual requirements ( D ) ?are 6 0 , 0 0 0 ?units and Horizon's plant operates 2 5 0 ?days per year. The data for three suppliers are in the following table.
Annual Freight Costs
Shipping Quantity ( Q ) ?
?
Supplier 1 0 , 0 0 0 2 0 , 0 0 0 ? Price / Unit ( p ) ?Annual Holding Cost / Unit ( H ) ? Lead Time ( L ) ( days ) ?Annual Administrative Cost
Abbott $ 9 , 0 0 0 ? $ 7 , 0 0 0 ? $ 2 8 ? $ 5 . 6 0 5 ? $ 9 , 0 0 0 ?
Baker $ 1 2 , 0 0 0 ? $ 9 , 0 0 0 ? $ 3 1 ? $ 6 . 2 0 6 ? $ 1 2 , 0 0 0 ?
Carpenter $ 1 1 , 0 0 0 ? $ 9 , 0 0 0 ? $ 3 0 ? $ 6 . 0 0 8 ? $ 1 1 , 0 0 0 ?
Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular?
Using: _ _ _ _ _ _ _ _ _ ( Baker , ?Abbott, or Carpenter ) ?and a shipping quantity of _ _ _ _ _ _ _ _ _ ( 1 0 , 0 0 0 ?or 2 0 , 0 0 0 ) ?units is the lowest cost alternative, with annual total costs to Horizon Cellular of $ _ _ _ _ _ _ _ _ _ . ?
( Enter your response as an integer. )

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