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Polar Bear Computer Co outsources the production of motherboards for its computers. It is cumently deciding which of two suppliers to use Alpha or Beta
Polar Bear Computer Co outsources the production of motherboards for its computers. It is cumently 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 Bleta will be inspected. The following data refer to costs associated with Alpha and Bet 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? Data table Requirement 1, What is the relevant cost of purchasing from Alpha and Beta? Calculate the relevant cost of purchasing from Alpha and Ba Purchase costs Ordering costs Required annual return on investment Stockout coste Return costs Other carrying costs Total cost Alpha Number of orders per year Alpha 00 Beta 90 Annual motherboards demanded 15,000 15.000 Beta Price per motherboard $ 93 00 Ordering cost per order 1 Inspection cost per un . Average inventory level 100 100 units Expected number of stockouts Stackout cost joost of rush order) per stocko Units returned by customers for replacing motherboards Cost of replacing each motherboard Required annual return on investment 100 300 9000 $ 258 25 10% 10% Other carrying cost per unit per year Print Done $ 2.00 1.2.30 Question Vi
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