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The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during the manufacturing of vehicles. Burdell wants to locate a

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The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during the manufacturing of vehicles. Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation. The supplier will be selected based on the total annual cost to supply Burdell's needs. Burdell's annual requirements are for 25,000 tires, and the company operates 250 days a year. The following data are available for two suppliers being considered. SUPPLIER PRICE TIRE) INVENTORY HOLD COSTS LEAD TIME (L) DAYS) ADMIN COSTS SHIPPING QUANTITY PER SHIPMENT 2,000 1,000 ANNUAL SHIPPING COSTS $18,000 $25,000 KS TIRE MO AUTO $30 $29 $6,00 $5.80 6 4 $15.000 $18,000 What are the total annual costs if KS Tire is the supplier selected? $791,600 $792,600 $772.320 $769,320

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