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In your role within procurement, you have been tasked with selecting among three different suppliers for an electronic component assembly. You are making your decision

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In your role within procurement, you have been tasked with selecting among three different suppliers for an electronic component assembly. You are making your decision solely on total landed cost of the assembly. The information for each supplier is provided below, along with a rough map of supplier locations relevant to the facility that needs the assembly. Using the information provided, answer the three questions below. Include all calculations and/or Excel workbooks used for your decision making. Make sure that any charts or graphs have properly marked axis labels, titles, and units of measure A.) You are expected to purchase 10,000 assemblies next year. Which supplier would you select, using total fully landed cost as your criteria? What would be the total fully landed cost per supplier? Supplier A 375 Supplier B 125 Supplier 1,900 Transport Distance (miles) Cost per Mile, per shipment $1.75 $2.00 $3.75 Handling cost per shipment $500 $1,000 $5,000 # of Assemblies per shipment 2,000 2,000 2,000 Labor Costs per assembly $8.00 $10.50 $6.25 Material Costs per assembly $24.00 $26.00 $24.00 B.) Supplier "C" has access to trucks that can fit 4,000 assemblies per shipment instead of 2,000. Handling and cost per mile would remain the same - would this new information change your decision? Problem 2 (6 points) You are currently purchasing packaging from a supplier that is having financial difficulties. As a precaution, your manager wants you to do an analysis for purchasing packaging from an alternate supplier. If you purchase packages 20,000 in a truckload, what per package cost must you negotiate with the alternate supplier to keep costs neutral? Alternate Supplier $ Per Package Cost Distance Cost per mile Current Supplier 1.25 70 miles 2.25 410 miles 2.25 $

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