The Johnson Cycle Company buys tires to bicycle tires to use in the process of building their bicycles. Johnson cycle wants to find a low-cost supplier for the tires. The criteria for selection will be based on total cost and the supplier will be selected based on total annual cost to supply all of Johnson's needs. Johnson's annual requirements are for 20,000 tires, and the company operates 250 days a year. The following data are from 2 suppliers

Using the Total Cost Analysis for Supplier Selection, which supplier should Johnson choose? Provide details to justify your answer.
The Johnson Cycle Company has completed a total cost analysis for two suppliers of tires to support their business. They also consider delivery speed, consistent quality and volume flexibility in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table.

Using the preference matrix approach for selecting suppliers, which supplier should Johnson select?

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SHIPPING QUANTITY SHIPPING PRICE HOLD COSTS TIME INVENTORY LEAD SUPPLIER per DAYS) COSTS $10,000 $9,000 COSTS TIRE (p) SHIPMENT Lincoln Tire 1,000 Co. Tokyo Tire Co. 2,000 S10,000 S16 S6.50 S20,000 S15 S5.35 10 CRITERION Total Cost Delivery Speed Consistent Quality Environmental Sensitivity WEIGHT Lincoln Tire Tokyo Tire 20 30 25 25