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Topic 5 Assignment i Saved Help Save b-1. If you could move the lot size up to ship in truckload quantities, calculate the total cost
Topic 5 Assignment i Saved Help Save b-1. If you could move the lot size up to ship in truckload quantities, calculate the total cost for each supplier. (Do not round intermediate calculations. Round "Required lot size for truckload" and final answers to the nearest whole number.) B HINT: Use (full) truckload cost rates and the lowest (feasible) unit cost for all calculations. For example, if there are 8.3 orders per year, points don't split the 8.3 orders into 8 full truckloads and 0.3 less-than-truckloads - use the full truckload rate for all 8.3 orders. For annual purchase cost, don't use two different unit costs for the 8 complete orders and the 0.3 partial orders - use the lowest (feasible) unit e Book cost for all 8.3 purchase orders based on the lot size needed for a full truckload. Hint Print Supplier 1 Supplier 2 Total cost $ 7,793,491 $ 7,717,687 References b-2. Would your supplier selection change? Yes O No Mc Graw Pre. of 10 Hill Next > y sunnySaved Help Save & E Topic 5 Assignment i Che Problem 16-12 (Algo) Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company B points uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,420 units. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree e Book to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected: Hint Print Requirements (annual forecast) 17,040 units References Weight per engine 25 pounds Order processing cost 140 per order Inventory carry cost 20 percent of the average value of inventory per year Note: Assume that half of lot size is in inventory on average (1.420/2 = 710 units) Two qualified suppliers have submitted the following quotations SUPPLIER 1 SUPPLIER 2 ORDER QUANTITY UNIT PRICE UNIT PRICE 1 to 1,499 units/order 454 452 1, 500 to 2, 999 units/order 450 452 3 and + inits/ nader 448 445 Mc Graw Hill 74 F Partly sunny Search L 9 WSUPPLIER 1 SUPPLIER 2 ORDER QUANTITY UNIT PRICE UNIT PRICE 1 to 1,499 units/order 454 452 1,500 to 2,999 units/order 450 452 3,000 + units/order 448 445 Tooling costs $27, 980 $25,800 Distance 120 miles 100 miles points Your assistant has obtained the following freight rates from your carrier: eBook Hint Truckload (43,060 1bs. each load) : $0.80 per ton-mile Print Less-than-truckload: $1. 20 per ton-mile References Note Per ton-mile = 2,000 lbs. per mile. a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.) Supplier 1 Supplier 2 Total cost $ 41,348 $ 38.306 ME raw Prey 7 of 10 Next > Hil tly sunny search W hp
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