Sarah, a buyer at Kuantan Inc., a Alabama-based purveyor of custom large screen televisions for AV enthusiasts, was doing some number crunching. Kuantan Inc. was reevaluating its suppliers for a key component of the custom large screen television, the LCD screen. After some extensive evaluation, Sarah had narrowed it down to two suppliers and she was comparing them. Tuscaloosa Electronics, Inc. was a regional company and Shanghai Television was based in Guangdong Province, China. Given the following information that Sarah compiled, use total cost analysis to determine which supplier is more cost-effective for Kuantan Inc. If she buys from a domestic supplier, she expects to hold 1 week of demand as safety stock. If she buys from an international supplier, she expects to hold 1 month of demand as safety stock. For purposes of calculating quality problems and declaring the value for customs and insurance, Sarah uses the expected invoice amount (purchase cost + packing/packaging) as a base. Sarah also knows that additional factory inspection trips will need to be made to the China facility to support the company's environmental, social, and quality goals. Assume 365 days, 52 weeks a year. on.edu GmailPeoplesoft Library HelpDesk This course Participants DuySM I LTON S P OTUTO TITOITUTO mama sarety STOCK TO purposes of calculating quality problems and declaring the value for customs and insurance, Sarah uses the expected invoice amount purchase cost + packing/packaging) as a base. Sarah also knows that additional factory inspection trips will need to be made to the China facility to support the company's environmental, social, and quality goals. Assume 365 days, 52 weeks a year. Important! Round each entry to the nearest whole number. Enter as #####, e.g. 10000 (without COMMA) or -1000 (for payment term savings) Product weight pounds Cost of working capital 8% per year Profit margin 13% annual Inventory carrying rate (Inventory holding rate) 15% annual Price of finished bicycle frame $1,500 per unit Percent of late deliveries that result in backorders 20% of late deliveries Percent of late deliveries that result in lost sales 80% of late deliveries Backorder cost 425.00 per backorder Order lot size units 6,167 Annual requirements units Quoted unit price Packaging cost (+ packing for international shipping) 74,000 Tuscaloosa Electronics $80.00 $3.20 Shanghai Television $58.00 $6.74 DOLL u Gmail Peoplesoft Library HelpDesk This course Participants Tuscaloosa Electronics Shanghai Television $80.00 $58.00 $3.20 $6.74 Quoted unit price Packaging cost (+ packing for international shipping) per unit Tooling cost Invoice Terms $12,000 2/10, net 30 $4,000 2/15, net 30 Order processing cost 848 101 3.00% 1.00% 1,276 500 3.00% 1.00% Domestic delivery distance (in miles) Supplier quality rating (% problems) Supplier delivery rating (% problems) Number of forty-foot equivalents (FEU) per order China inland freight and freight forwarding (per FEU) Ocean transport (per FEU) Marine cargo insurance (% declared value) U.S. Customs duty and fees (% declared value) U.S. port handling and brokerage fees (per FEU) Factory inspection trips to China $445 $2,969 1.40% 4.50% $1,378 $20,000 $1.09 Domestic U.S. Transportation Costs Full truckload (TL 2 40,000 lbs.) Less-than-truckload (LTL) Note: per ton-mile = 2,000 pounds per mile per ton-mile per ton-mile Participants arkson.edu Gmail Peoplesoft com per com Description Library HelpDesk This course p ounds per Tucaloosa Electronics Shanghai Television Purchase cost of cycle stock 5,920,000 4,292,000 Packaging cost 236,800 498,760 Expected invoice amount 6,156,800 4,790,760 Effect of Discount Terms Cash discount (123,136.00) (95,815) Cost of Capital Savings Tooling cost (13,494.36) $12,000 (15,750.44) $4,000 Ordering costs 10,175 15,311 Purchase cost of safety stock 113,846.15 357,667 Holding costs (cycle stock) 37,002 26,826 Holding costs (safety stock) 17,076.92 53,650 Search DI PeopleSoft Moodle @ Clarkson University... Liberty League C Home | Chegg.com H Handshake Clarkson.edu Gmail Peoplesoft Library_HelpDesk This course Participants Domestic transportation cost 36,660 9929 China inland freight and freight forwarding 445 Ocean transport 2969 x 67071 Marine cargo insurance 215584 US customs duty and fees US port handling and brokerage fees 1378 Quality cost 184,704.00 143,723 Cost of late delivery Backorders 62,900 62,900 Lost sales 115,440 115,440 $20,000 China factory inspection trips TOTAL COST to search Sarah, a buyer at Kuantan Inc., a Alabama-based purveyor of custom large screen televisions for AV enthusiasts, was doing some number crunching. Kuantan Inc. was reevaluating its suppliers for a key component of the custom large screen television, the LCD screen. After some extensive evaluation, Sarah had narrowed it down to two suppliers and she was comparing them. Tuscaloosa Electronics, Inc. was a regional company and Shanghai Television was based in Guangdong Province, China. Given the following information that Sarah compiled, use total cost analysis to determine which supplier is more cost-effective for Kuantan Inc. If she buys from a domestic supplier, she expects to hold 1 week of demand as safety stock. If she buys from an international supplier, she expects to hold 1 month of demand as safety stock. For purposes of calculating quality problems and declaring the value for customs and insurance, Sarah uses the expected invoice amount (purchase cost + packing/packaging) as a base. Sarah also knows that additional factory inspection trips will need to be made to the China facility to support the company's environmental, social, and quality goals. Assume 365 days, 52 weeks a year. on.edu GmailPeoplesoft Library HelpDesk This course Participants DuySM I LTON S P OTUTO TITOITUTO mama sarety STOCK TO purposes of calculating quality problems and declaring the value for customs and insurance, Sarah uses the expected invoice amount purchase cost + packing/packaging) as a base. Sarah also knows that additional factory inspection trips will need to be made to the China facility to support the company's environmental, social, and quality goals. Assume 365 days, 52 weeks a year. Important! Round each entry to the nearest whole number. Enter as #####, e.g. 10000 (without COMMA) or -1000 (for payment term savings) Product weight pounds Cost of working capital 8% per year Profit margin 13% annual Inventory carrying rate (Inventory holding rate) 15% annual Price of finished bicycle frame $1,500 per unit Percent of late deliveries that result in backorders 20% of late deliveries Percent of late deliveries that result in lost sales 80% of late deliveries Backorder cost 425.00 per backorder Order lot size units 6,167 Annual requirements units Quoted unit price Packaging cost (+ packing for international shipping) 74,000 Tuscaloosa Electronics $80.00 $3.20 Shanghai Television $58.00 $6.74 DOLL u Gmail Peoplesoft Library HelpDesk This course Participants Tuscaloosa Electronics Shanghai Television $80.00 $58.00 $3.20 $6.74 Quoted unit price Packaging cost (+ packing for international shipping) per unit Tooling cost Invoice Terms $12,000 2/10, net 30 $4,000 2/15, net 30 Order processing cost 848 101 3.00% 1.00% 1,276 500 3.00% 1.00% Domestic delivery distance (in miles) Supplier quality rating (% problems) Supplier delivery rating (% problems) Number of forty-foot equivalents (FEU) per order China inland freight and freight forwarding (per FEU) Ocean transport (per FEU) Marine cargo insurance (% declared value) U.S. Customs duty and fees (% declared value) U.S. port handling and brokerage fees (per FEU) Factory inspection trips to China $445 $2,969 1.40% 4.50% $1,378 $20,000 $1.09 Domestic U.S. Transportation Costs Full truckload (TL 2 40,000 lbs.) Less-than-truckload (LTL) Note: per ton-mile = 2,000 pounds per mile per ton-mile per ton-mile Participants arkson.edu Gmail Peoplesoft com per com Description Library HelpDesk This course p ounds per Tucaloosa Electronics Shanghai Television Purchase cost of cycle stock 5,920,000 4,292,000 Packaging cost 236,800 498,760 Expected invoice amount 6,156,800 4,790,760 Effect of Discount Terms Cash discount (123,136.00) (95,815) Cost of Capital Savings Tooling cost (13,494.36) $12,000 (15,750.44) $4,000 Ordering costs 10,175 15,311 Purchase cost of safety stock 113,846.15 357,667 Holding costs (cycle stock) 37,002 26,826 Holding costs (safety stock) 17,076.92 53,650 Search DI PeopleSoft Moodle @ Clarkson University... Liberty League C Home | Chegg.com H Handshake Clarkson.edu Gmail Peoplesoft Library_HelpDesk This course Participants Domestic transportation cost 36,660 9929 China inland freight and freight forwarding 445 Ocean transport 2969 x 67071 Marine cargo insurance 215584 US customs duty and fees US port handling and brokerage fees 1378 Quality cost 184,704.00 143,723 Cost of late delivery Backorders 62,900 62,900 Lost sales 115,440 115,440 $20,000 China factory inspection trips TOTAL COST to search