Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LM.81 Monkey's Fist is trying to determine where to source their product. In the past, they have sourced solely domestically, but they have sufficiently grown

image text in transcribed

LM.81 Monkey's Fist is trying to determine where to source their product. In the past, they have sourced solely domestically, but they have sufficiently grown to look at international suppliers. Next month's expected demand is 6,175 units. There are three suppliers to choose from, one domestic, the other two offshore. The table below contains all relevant cost data. Note that both international shipping and inland freight costs are a flat fee for a shipment of up to 13,000 units of demandwhether shipping one unit, one thousand units, or 13,000 units, the cost is the same (the flat fee).

Criteria Domestic Foreign 1 Foreign 2
Price/Unit $4.12 $2.78 $2.96
Packaging Cost/Unit $0.13 $0.40 $0.31
International Shipping/Entire Shipment $0 $520 $880
Inland Freight/Entire Shipment $220 $200 $230

I use a EXCEL.

Criteria Domestic Foreign 1 Foreign 2
Price/Unit $4.12 $2.78 $2.96
Packaging Cost/Unit $0.13 $0.40 $0.31
International Shipping/Entire Shipment $0 $520 $880
Inland Freight/Entire Shipment $220 $200 $230
Total Landed cost 26464 20357 21302
21477
Expected demand 6175
Actual demand 81% 5002

What is the total landed cost for the domestic supplier? (Display your answer as a whole number.) ---- 26464 What is the total landed cost for foreign supplier 1? (Display your answer as a whole number.) ---- 20357 What is the total landed cost for foreign supplier 2? (Display your answer as a whole number.) ---- 21302 Suppose actual demand is only 81% of expected demand. What would be the total landed cost of the domestic supplier? (Display your answer as a whole number.) ---- 21477

At what volume of monthy demand would the total cost be the same for the domestic supplier and foreign supplier 1? (Display your answer as a whole number.)

- 3 LM.81 Monkey's Fist is trying to determine where to source their product. In the past, they have sourced solely domestically, but they have sufficiently grown to look at international suppliers. Next month's 5 expected demand is 6,175 units. There are three suppliers to choose from, one domestic, the other two offshore. The table below contains all relevant cost data. Note that both international shipping and inland freight costs are a flat fee for a shipment of up to 13,000 units of demand-whether shipping one unit, one thousand units, or 13,000 units, the cost is the same (the flat fee). What is the total landed cost for the domestic supplier? (Display your answer as a whole number.) What is the total landed cost for foreign supplier 1 ? (Display your answer as a whole number.) What is the total landed cost for foreign supplier 2 ? (Display your answer as a whole number.) Suppose actual demand is only 81% of expected demand. What would be the total landed cost of the domestic supplier? (Display your answer as a whole number.) At what volume of monthy demand would the total cost be the same for the domestic supplier and foreign supplier 1 ? (Display your answer as a whole number.)

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_2

Step: 3

blur-text-image_3

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

Quantitative Analysis For Management

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna

11th Edition

9780132997621, 132149117, 132997622, 978-0132149112

More Books

Students also viewed these General Management questions