SCMG267 - Supply Chain Operations Management Total Cost of Ownership Exercise Chapter 13. Homework Question Duquesne Graphics Company (DGC) uses 750.000 magenta ink cartridges each year to meet customer demand for the "Triple Threat" ballpoint pen. Procurement and Quality Management have completed the supplier evaluation process and selected and qualified two (2) suppliers to supply the cartridges. Each supplier has submitted a contract plan based on a Request For Quote (RFQ), which specified Contract for one-year total of 750,000 magenta ink cartridges to be delivered in equal quantities based on economic order quantity where possible. Use calendar (365) days for planning. DGC Supply Management has calculated the following information: EOQ=125,000 Return cost per unit =$4.00 The following represents the quotes recelved from each supplier and quality performance history was compiled by DGC Procurement. - The PQI represents the % of good qualify parts that were properly manufactured and not damaged in transit. The inverse is your defective retuin tate ( 2% for A and 1% for B). What is the Total Cost of Ownership per cortridge from each supplier? TCO = Total price spent for the year + Orderine Costs where possible. Use calendar (36b) days tor planning. DGC Supply Management has calculated the following information: EOQ=125,000 Return cost per unit =$4.00 The following represents the quotes received from each supplier and quality performance history was compiled by DG - The PQI represents the % of good quallty parts uld weie prupony mundactured and not damaged in transit. The invers defective relurn rate (2% for A and 1% for B). What is the Total Cost of Ownership per cartridge from each supplier? TCO = Total price spent for the year + Ordering Costs + Retum Costs - Total Annual Cost/ Total Annual Units = TCO per part NOTE: You con perform this in Excel. Use the template in Canvos under instructor's module for this chapter