The ABC Company had two options for sourcing molded plastic parts, and these options are presented in the table below. Now, the ABC Company has identified another potential supplier for the molded plastic parts. The new supplier has bid

$0.1100

per part but also will impose a shipping and handling charge of

$0.0250

per unit. Additional inventory handling charges should amount to

$0.0080

per unit. Finally, purchasing costs are estimated at

$30

per month for the length of the 36-month contract. Note that the forecasted demand is a total of 1 million units over the 36 months.

LOADING...

Click the icon to view the total cost analysis for the sourcing decision at ABC.

Part 2

a. The total cost per unit for the new supplier is

$enter your response here.

(Enter your response rounded to four decimal places.)

The ABC Company had two options for sourcing molded plastic parts, and these options are presented in the table below. Now, the ABC Company has identified another potential supplier for the molded plastic parts. The new supplier has bid $0.1100 per part but also will impose a shipping and handling charge of $0.0250 per unit. Additional inventory handling charges should amount to $0.0080 per unit. Finally, purchasing costs are estimated at $30 per month for the length of the 36 -month contract. Note that the forecasted demand is a total of 1 million units over the 36 months. Click the icon to view the total cost analysis for the sourcing decision at ABC. a. The total cost per unit for the new supplier is $ (Enter your response rounded to four decimal places.) More Info