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Purple Reign, an apparel manufacturer located in Minneapolis, sources the fabric used for clothes from outside vendors. Recently, Purple Reign has decided to compare pricing

Purple Reign, an apparel manufacturer located in Minneapolis, sources the fabric used for clothes from outside vendors. Recently, Purple Reign has decided to compare pricing on a black roll of fabric used to manufacture 10,000 t-shirts. Purple Reign must decide between a fabric provider located in Bangladesh versus one located in Graniteville, South Carolina. Use the chart below to find a TCO from each provider to help Purple Reign decide which provider should be utilized to provide the black fabric.
PROVIDER
Bangladesh
Graniteville, SC
Cost of Fabric
$ 1,250.00
$ 3,000.00
Transportation
Freight movement
$ 1,750.00
$ 375.00
Customs Duties
$ 150.00
$ -
Ordering Costs
$ 150.00
$ 50.00
Quality Costs (i.e. scrap/rework)
2% of cost of fabric
1% of cost of fabric
Which provider would you select (based on cost)?

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