Supply Chain Management

You are responsible to evaluate three bids to supply surge protector outlets for 140 server racks. PowerPort submits a bid of $170 per unit with a defect rate of 3%; SureFlow bid is $265 per unit with a defect rate of 1%; and Volta Link bid is $300 per unit with a defect rate of 0.5%. If a surge protector outlet fails, it costs an average of $3200 in losses and herding costs. Considering the total purchasing cost and failure cost, which supplier would you select?