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please answer #2. please show all work. 2. You are a logistics manager for Alphasmart, a smartphone manufacturer. You are trying to select a single
please answer #2.please show all work. 2. You are a logistics manager for Alphasmart, a smartphone manufacturer. You are trying to select a single supplier for the raw materials for your product. Two companies can provide the necessary materials - Goofy and Snoopy. Goofy has sufficient capacity to meet your demand and charges $3.00 per unit. Snoopy is a small supplier with a limited capacity, can supply up to 30,000 units per year, and charges $2.50 per unit of the raw material. If you do not get raw material from your supplier, you buy from the spot market at $4 per unit. Alphasmart sold 30,000 smartphones last year and estimates demand for smartphones to go up by 20% with a probability of 60 percent and to remain the same as last year with a probability of 40% for the first year. Alphasmart uses a discount rate of 10 percent. Assume all costs are incurred at the end of the year and only one supplier needs to belected. Which supplier will you selent hasad-1 the present value of your annual cost? (50) Note that the supply contract is for one year only
please show all work.
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