There are two subcontractors that produce electronic components for the charging module that fit Auto-El-Moto's electric cars, both offer a discounted price depending on the order, and both are abroad. The table shows their offer depending on the order quantity. The order cost is 1500 dollars/order; the storage cost is 30% of the respective discounted product price, and the demand for the coming production year is 500 units.

Examine and report which subcontractor is most economical to use and find out which order size you should make to keep the total cost of your company as low as possible.

If you knew that: i) West Coast Electric has in the past been accused of substandard working conditions where employees have been denied a break by their supervisors, and that the company has been known to let employees work under inadequate ergonomic prerequisites. ii) Sustainable Asia Motors has been linked to espionage by its customers in other countries. iii) There are no other options of companies that can supply the electronic components that you need in production. Which subcontractor would you choose based on a quality strategy? Explain how you would make that decision?

Subcontractors discount number discounted amount discount price per unit 10 to 30 0% 7000 West Coast Electrics 231 to 50 5% 6650 351 And more 10% 6300 10 to 25 0% 6850 226 to 35 3% 6644,5 Sustainable Asia Motors 3 36 to 45 5% 6507,5 446 And more 8% 6302