A global sourcing manager for Delta Automotive wants to compute the total supply chain costs for automobile parts purchased from three different global suppliers. The data related to the supply chain costs associated with three possible suppliers has been collected in the Microsoft Excel Online file below.The annual demand D is 450,000 units. The supplier prices and transportation costs are predicated on an order quantity of 45,000 units (note that this is not the EOQ.) We may assume that parts are transported from Mexico to the United States by truck, and by a combination of ships and trucks from Japan and China, and 250 working days per year. Open the spreadsheet and perform the required analysis to answer the questions below.Questions1. What are the total supply chain cost for each of the suppliers? Round your answers to the nearest dollar. **Total Supply Chain Cost Analysis****Data**- **Japanese Supplier** - Procurement cost/unit, P: $7.65 - Management oversight cost/unit, O: $0.50 - Unit transportation cost, Ct: $0.60 - Order cost/order, Co: $605.00 - Holding cost per unit, Ch: $1.40 - Lead time, L (days): 45- **Mexican Supplier** - Procurement cost/unit, P: $7.90 - Management oversight cost/unit, O: $0.70 - Unit transportation cost, Ct: $0.30 - Order cost/order, Co: $480.00 - Holding cost per unit, Ch: $1.40 - Lead time, L (days): 30- **Chinese Supplier** - Procurement cost/unit, P: $6.60 - Management oversight cost/unit, O: $1.10 - Unit transportation cost, Ct: $0.80 - Order cost/order, Co: $760.00 - Holding cost per unit, Ch: $1.40 - Lead time, L (days): 90**Annual Demand and Order Quantity**- Annual Demand, D: 450,000- Order Quantity, Q: 45,000- Working days in a year: 250**Cost Calculations for the Japanese Supplier**- Total procurement cost: $3,555,000.00- Total management oversight cost: $315,000.00- Total annual transportation cost: $135,000.00- Annual order cost: $6,050.00- Annual holding cost: $31,500.00- Average annual pipeline inventory cost: $75,600.00- Total supply chain costs: $4,116,900.00**Notes**- Average number of orders/year and average daily demand are not available (#N/A) for the Mexican and Chinese suppliers.- The lowest supply chain cost is also not available (#N/A) for these suppliers.

Answered: A global sourcing manager for Delta…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

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A global sourcing manager for Delta Automotive wants to compute the total supply chain costs for automobile parts purchased from three different global suppliers. The data related to the supply chain costs associated with three possible suppliers has been collected in the Microsoft Excel Online file below.
The annual demand D is 450,000 units. The supplier prices and transportation costs are predicated on an order quantity of 45,000 units (note that this is not the EOQ.) We may assume that parts are transported from Mexico to the United States by truck, and by a combination of ships and trucks from Japan and China, and 250 working days per year. Open the spreadsheet and perform the required analysis to answer the questions below.

Questions

1. What are the total supply chain cost for each of the suppliers? Round your answers to the nearest dollar.