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The supply chain manager for a French airframe manufacturer in Toulouse is weighing options among four different suppliers of toggle switches. The manufacturer uses 300,000
The supply chain manager for a French airframe manufacturer in Toulouse is weighing options among four different suppliers of toggle switches. The manufacturer uses 300,000 toggle switches a year (a work year is 250 days) and prefers to order 15,000 at a time. All costs shown in the following table are based on that order quantity. Albanian Bulgarian Czech Danish Procurement $7.65 $7.75 $14.95 $11.45 Mgt oversight $6.55 $6.35 $6.75 $7.85 Unit transport $0.60 $6.70 $3.30 $3.70 Order cost $625.00 $630.20 $626.30 $632.20 Holding cost $4.55 $8.45 $3.75 $8.95 Lead time $60.00 $64.20 $59.50 $61.10 Which supplier has the lowest total supply chain cost? a. Albanian b. Bulgarian c. Danish d. Czech
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