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Use the following information to determine the back order cost for supplier A: Table 1 Table 2 Use the following information to determine the back
Use the following information to determine the back order cost for supplier A: Table 1 Table 2
Use the following information to determine the back order cost for supplier A: Table 1 Order lot size Annual Requirements Back order cost Late delivery of the component 300 3122 units $15 per unit 50% lost sales and 50% back orders of finished goods. results in Table 2 Unit Price 1 to 999 units/order 1000 to 2,999 units/order Supplier Delivery Rating (late) Supplier A $50 $48 1% Supplier B $52 $50 2%
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