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SharkNinja is between two suppliers for motors used in production of its vacuum cleaners. Annual holding cost is 2 0 % of the purchase cost
SharkNinja is between two suppliers for motors used in production of its vacuum cleaners. Annual holding cost is of the purchase cost of the motor per unit per year. Demand for the motors is normally distributed with a mean of units per week and a standard deviation of units per week. SharkNinja uses a service level of for these motors. Assume SharkNinja operates days per week, weeks per year, and days per year. SharkNinja has collected the information on related costs from both suppliers in Table Supplier A has a lower procurement cost per unit but it is slower and less reliable with a higher fixed order cost. SharkNinja would like to consider a total cost of ownership approach to determine which supplier to use. Supplier A Supplier B Procurement Cost per unit $ $ Mean Lead Time in weeks Standard Deviation of Lead Time in weeks Fixed Cost of Placing Orders $ $ SharkNinja uses a "managerial" RQ policy such that regardless of which supplier it chooses it will set its order quantity using the EOQ formula and its reorder point to achieve the desired level of service. Answer this question provide full and final answer: Enter the absolute value of the difference in the total annual costs for the two options.
SharkNinja is between two suppliers for motors used in production of its vacuum cleaners. Annual holding cost is of the purchase cost of the motor per unit per year. Demand for the motors is normally distributed with a mean of units per week and a standard deviation of units per week. SharkNinja uses a service level of for these motors. Assume SharkNinja operates days per week, weeks per year, and days per year.
SharkNinja has collected the information on related costs from both suppliers in Table Supplier A has a lower procurement cost per unit but it is slower and less reliable with a higher fixed order cost. SharkNinja would like to consider a total cost of ownership approach to determine which supplier to use.
Supplier A Supplier B
Procurement Cost per unit $ $
Mean Lead Time in weeks
Standard Deviation of Lead Time in weeks
Fixed Cost of Placing Orders $ $
SharkNinja uses a "managerial" RQ policy such that regardless of which supplier it chooses it will set its order quantity using the EOQ formula and its reorder point to achieve the desired level of service. Answer this question provide full and final answer: Enter the absolute value of the difference in the total annual costs for the two options.
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