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Question 1 Your company makes snow blowers and this winter they have been selling very well. You are evaluating a quote from a supplier for
Question 1 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: 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 (40,000lbs) and $2.00 for a less-thantruckload shipment There are 360 days in a year. There are 2000lbs/ton Order costs, tooling costs, quality costs, late-delivery costs should be ignored. What is the total cost of ownership for supplier 1 ? (Show all your work.) What is the Annual Purchase Cost? Round answer to nearest whole number. Question 2 0/2pts What is the Annual Holding Cost? Round answer to nearest whole number. Question 3 0.5/1pts For calculating freight cost, the freight rate would be because (ETL/LTL) s used. Answer 1: different Answer 2: LTL. What is the Annual Freight Cost? Round answer to nearest whole number. Question 5 0/3 pts Calculate the cost savings with Net 45 terms. Round answer to nearest whole number. Question 6 0/3 pts Calculate the cost savings with 2%10 terms. Round answer to nearest whole number. Question 7 2/2 pts Which terms should be used? 2%10 Net 45 Question 8 0/4pts What is the TCO? Round answer to nearest whole number
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