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Polar Bear Computer Co. outsources the production of motherboards for its computers. It is currently deciding which of two suppliers to use: Alpha or Beta.

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Polar Bear Computer Co. outsources the production of motherboards for its computers. It is currently deciding which of two suppliers to use: Alpha or Beta. Due to differences in the product failure rates in the two companies, 10% of motherboards purchased from Alpha will be inspected and 30% of motherboards purchased from Beta will be inspected. The following data refer to costs associated with Alpha and Beta: (Click the icon to view the data.) Requirements 1. What is the relevant cost of purchasing from Alpha and Beta? 2. What factors other than cost should Polar Bear consider? Number of orders per year Annual motherboards demanded Price per motherboard Ordering cost per order Inspection cost per unit Average inventory level 200 units 200 units Expected number of stockouts Stockout cost (cost of rush order) per stockout $2$10 Units returned by customers for replacing motherboards 50500 Cost of renlacina each motherhoard $23$23 Required annual return on investment Other carrying cost per unit per year 10%10%$2.90$2.90 Requirement 1. What is the relevant cost of purchasing from Alpha and Beta? Calculate the relevant cost of purchasing from Alpha and Beta

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