Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Art Of Safety Auditing A Tutorial For Regulators

Authors: Sasho Andonov

1st Edition

0367351080, 978-0367351083

More Books

Students also viewed these Accounting questions

Question

What are the purposes of promotion ?

Answered: 1 week ago

Question

4. Describe the factors that influence self-disclosure

Answered: 1 week ago

Question

1. Explain key aspects of interpersonal relationships

Answered: 1 week ago