Question 3: Managing suppliers _{30 marks) Hubbard Industries is undertaking an analysis of supplier costs to evaluate each supplier's relative costs and performance. Currently, they are focusing attention on the two suppliers of door handles. The suppliers are SafePlus Ltd and BrushFinish Ltd. Hubbard has been dealing with these suppliers for several years. Most orders are placed with SafePlus Ltd since it charges only $7.20 per handle, whereas BrushFinish Ltd charges $6.80 per handle. In the past year, Hubbard purchased 30,000 handles from SafePlus Ltd and 5,0ft handles from BrushFinish Ltd. For the most recent year, the following supplier-related activities and costs were lidentified: Activity Place purchase order Receive and inspect deliveries Store inventory Rework product due to poor quality material Production downtime due to poor quality material Receive and inspect late deliveries Total cost $25,000 $84,000 $8,000 $25,000 $5,000 $17,500 Number of activities 100 orders 400 de liveries 200 units stored per year 500 units reworked 100 hours downtime 50 late deliveries O An analysis revealed that last year the following activities related to the two suppliers: Activity Place purchase order Receive and inspect deliveries Store inventory Rework product due to poor quality material Production downtime due to poor quality material Receive and inspect late deliveries SafePlus Ltd 20 orders 200 deliveries 70 units per year 200 units 48 hours 40 late deliveries Brush Finish Ltd 10 orders 50 deliveries 16 units per year 10 units 4 hours 5 late deliveries (14 marks) Required: Questid 3.1 Calculate the supplier performance index for each supplier. Show your detailed workings. Your Answer: SafePlus Ltd BrushFinish Ltd Supplier performance index Show your workings here (Insert rows/columns and expand the space as required