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please explain how you solved the management questions. HW 4 assignment to download is above. Your company makes snow blowers and this winter they have
please explain how you solved the management questions.
HW 4 assignment to download is above. Your company makes snow blowers and this winter they have been selling very well. You are evaluating a quote from a supplier for engines that power your snow blowers. The quote is as follows: Supplier 1 Price $90 Terms 2% 10 Net 45 Distance 200 Minimum order quantity 1500 Weight 20 lbs Assume the following: . Annual volume for engines is expected to be 90,000 units The price is constant regardless of volume or order quantity Inventory holding rate is 25% Working capital costs are 12% Your order quantity will always equal the minimum order quantity for the supplier Your freight rate is $1.75 per ton mile for a full truckload (40,000 lbs) and $2.00 for a less-than-truckload shipment There are 360 days in a year. There are 2000 lbs/ton . . . Order costs, tooling costs, quality costs, late-delivery costs should be ignored. Round all answers to the nearest whole number. Question 1 What is the Annual Purchase Cost? Round answer to nearest whole number. Question 2 What is the Annual Holding Cost? Round answer to nearest whole number. Question 3 For calculating freight cost, the freight rate would be because (FTL/LTL) is used. Question 4 What is the anticipated Annual Freight Cost? Round answer to nearest whole number. Question 5 Calculate the cost savings with Net 45 terms. Round answer to nearest whole number. Question 6 Calculate the cost savings with 2% 10 terms. Round answer to nearest whole number. Question 7 Which terms should be used? O 2% 10 Net 45 Question 8 What is the TCO? Round answer to nearest whole numberStep by Step Solution
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