Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Spreadsheet A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturi

image text in transcribed
Spreadsheet A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturi located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Oversight Transport Order Cost Cost to Store Order Lead Certified Order Price per Cost Cost per (Co) One Unit Time in Supplier Size (Q) Unit (P) per Unit (O) Unit (Ct) One Year (Ch) Days (L) New Albany Mfg. 36,000 $16.16 $0.00 $0.96 $175 $1.55 60 LaPlaya Mfg. 72,000 $15.05 $0.24 $1.39 $220 $1.20 76 a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 792,000 brake pads. Do not round inter calculations. Round your answer to the nearest dollar. Order quantity: 36,000 units 72,000 units Total procurement cost: $ 0 0 Total management oversight cost: $ 17280 Total annual transportation cost: $ 34560 $ 100080 Annual order cost: 175 220 Annual holding cost: $ 55800 86400 Average annual pipeline invenory cost: 0 Total supply chain costs: $ 90535 203980 b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose |New Albany Mfg. V with corresponding order quantity of X brake pads

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Corporate Annual Reports

Authors: William Pasewark

7th Edition

0073526932, 9780073526935

More Books

Students also viewed these Accounting questions

Question

5. It is the needs of the individual that are important.

Answered: 1 week ago

Question

3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago