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. Japanese Mexican Chinese Supplier Supplier Supplier Total
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.
Japanese | Mexican | Chinese | |
Supplier | Supplier | Supplier | |
Total |
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1
Total Supply Chain Cost Analysis
Japanese
Supplier
$7.65
$0.50
Mexican
Chinese
Supplier
$7.90
Supplier
$6.60
$1.10
Data
Procurement cost/unit, P
Management oversight cost/unit, O
Unit transportation cost, Ct
Order cost/order, C,
$0.70
$0.30
$0.60
$0.80
8
$605.00
$480.00
$760.00
Holding cost per unit, Ch
Lead time, L (days)
$1.40
$1.40
$1.40
10
45
30
90
11
Annual Demand, D
Order Quantity, Q
Working days in a year
Average number of orders/year|
Average daily demand
12
450.000
13
45,000
14
250
#N/A
#N/A
15
16
17
Japanese
Supplier
18
Mexican
Chinese
19
Cost Calculations
Supplier
Supplier
Total procurement cost
Total management oversight cost
Total annual transportation cost
Annual order cost
Annual holding cost
Average annual pipeline inventory cost
Total supply chain costs
20
21
22
23
24
25
26
27
28
Lowest Supply Chain Cost
#N/A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4614432f-2695-44c5-8180-7d6fed097b7c%2Ffaa55dcb-6a9c-4e2f-a874-fd07e76877fd%2Fgpbjx4b_processed.png&w=3840&q=75)
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