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Horizon Cellular manufactures cell phones. Management must select a circuit board supplier for a new phone model. The annual requirement (D) for the board is
Horizon Cellular manufactures cell phones. Management must select a circuit board supplier for a new phone model. The annual requirement (D) for the board is
Horizon Cellular manufactures cell phones. Management must select a circuit board supplier for a new phone model. The annual requirement (D) for the board is 40,000 units. Horizon's plant operates 250 days per year. Data for three possible suppliers appear in the following table. Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Cost/Unit (H $5.60 $5.80 $6.20 Lead Time da Annual Administrative Cost Supplier Abbott Baker 10,000 $10,000 20,000 $7,000 9,000 $7,000 $12,000 $9,000 $28 $29 $31 $10,000 $9,000 $12,000 The operations analyst for Horizon has already determined the total annual cost for some options. Abbot would cost $1,171,584/year with Q 10,000 units or $1,196,584/year with Q 20,000 units. Baker would cost $1,213,49 year with Q 10,000 units or $1,240,496/year with Q 20,000 units. Calculate the cost of the options with Carpenter and enter below the result across all three suppliers that provides the lowest total cost for Horizon Cellular Using | and a shipping quantity of units is the lowest cost option at year. (Enter your response as an integer.)Step by Step Solution
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