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Polar Bear Computer Co. outsources the production of motherboards for its computers. It is cumenty deciding which of two suppliers to use: Alpha or Bets.
Polar Bear Computer Co. outsources the production of motherboards for its computers. It is cumenty deciding which of two suppliers to use: Alpha or Bets. Due to differences in the product failure rates in the two companies K10% of motherboards purchased from Abha will be inspected and 30% of motherboards purchased fom Bata wil be inspected. The following data refer to costs associated with Alpha and Beta: (Click the on to view the data Requirements 1. What is the relevant cost of purchasing from Aha and Be? 2. What factors other than cost should Polar Bear consider Requirement 1. What a the relevant cost of purchasing from Alpha and De Calculate the relevant cost of purchasing from Alpha and Ba Purchase costs Ondering costs Inspection costs Required annual return on investment Stockout costs Return costs Other carrying costs Total cost Alpha Bate to view the data.) ant cost of er than cost Data table Alpha Beta hat is the re nt cost of p Annual motherboards demanded Number of orders per year Price per motherboard Ordering cost per order 90 90 15,000 15,000 93 $ 88 $ Inspection cost per unit is S 11 $ 9 5 $ 5 Average inventory level 100 units 100 units turn on in Expected number of stockouts 100 300 Stockout cost (cost of rush order) per stockout $ 3 89 $ 5 Units returned by customers for replacing motherboards 90 900 Cost of replacing each motherboard $ 25 $ 25 ts Required annual return on investment 10% 10% Other carrying cost per unit per year $ 2.80 $ 2.80 Print Done - X
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