Unit costs and Inventory Carrying Costs

Supplier	Price/Unit	Carrying Cost
A	123	22
B	125	19
C	126	18
D	100	40

Annual Freight Costs

Supplier	15,000 units	25,000 units	50,000 units
A	380,000	260,000	237,000
B	615,000	547,000	470,000
C	285,000	240,000	200,000
D	380,000	260,000	237,000

Other Costs

Supplier	Lead Time	Annual Admin Costs
A	30	250,000
B	15	275,000
C	7	225,000
D	90	2,500,000

Use the date in Table 1. Analyze costs and make recommendations regarding shipping options and suppliers. Which combination of shipping amount and supplier yields the lowest total cost?

Example of a correct response:

All cost and supplier combinations are contained in the table. Bolded entries are the low-cost options for each shipping quantity.

A	B	C	D
15000 units	xx,xxx,xxx	xx,xxx,xxx	xx,xxx,xxx
25000 units	xx,xxx,xxx	xx,xxx,xxx	xx,xxx,xxx
50000 units	xx,xxx,xxx	xx,xxx,xxx	xx,xxx,xxx