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m Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters
m Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters to the occasional fixer-upper who would prefer to get the job done fast rather than investing in a well-appointed tool box. Weekend Projects wants to find a supplier for a particular tool set that promises to be a big seller. Expected annual sales are 100,000 units (D). Weekend's warehouses operate 50 weeks a year. Management collected data on the two suppliers, which are contained in the table below: Annual Freight Costs Shipping Quantity (Q) D Supplier Bradley Alexander Price/Unit 10,000 25,000 50,000 (p) $35,000 $26,000 $19,000 $8.15 $40,000 $27,000 $19,000 $8.15 Annual Holding Lead Time (L) Cost/Unit (H) (wks) Annual Administrative Cost $1.63 $1.63 7 5 $15,000 $10,000 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? Using and a shipping quantity of as an i units is the lowest cost alternative, with annual total costs to Weekend Projects of $. (Enter your response Bradley Alexander Vil ans
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