The table compares supply chain costs for three suppliers: Japanese, Mexican, and Chinese. Each supplier's associated costs, demand, order quantities, and lead times are detailed below:### Cost Factors and Demand:- **Procurement cost/unit, P:** - Japanese: $7.65 - Mexican: $7.60 - Chinese: $7.00- **Management oversight cost/unit, O:** - Japanese: $0.55 - Mexican: $0.65 - Chinese: $1.25- **Unit transportation cost Ct:** - Japanese: $0.60 - Mexican: $0.35 - Chinese: $0.75- **Order cost/order, Co:** - Japanese: $625.00 - Mexican: $400.00 - Chinese: $850.00- **Holding cost per unit, Ch:** - Uniform across all: $1.35- **Lead time, L:** - Japanese: 60 - Mexican: 45 - Chinese: 120### Demand and Orders:- **Annual Demand, D:** 40,000 for all suppliers- **Order Quantity, Q:** 40,000 for all suppliers- **Average number of orders/year (D/Q):** 10.00 for all suppliers- **Average daily demand (D/250):** 1,600.00 for all suppliers### Cost Analysis:- **Total procurement cost:** - Japanese: $3,060,000.00 - Mexican: $3,040,000.00 - Chinese: $2,800,000.00- **Total management oversight cost:** - Japanese: $220,000.00 - Mexican: $260,000.00 - Chinese: $500,000.00- **Total annual transportation cost:** - Japanese: $240,000.00 - Mexican: $140,000.00 - Chinese: $300,000.00- **Total order cost:** - Japanese: $6,250.00 - Mexican: $4,000.00 - Chinese: $8,500.00- **Annual holding cost:** $27,000.00 for all suppliers # Supply Chain Cost Analysis for a Major Automobile ManufacturerA major automobile manufacturer located in Georgetown, Kentucky, relies on two certified vendors for brake pads, with the following details provided:- **New Albany Manufacturing** is located in Columbus, Ohio.- **LaPlaya Manufacturing** is situated in Monterrey, Mexico.The assembly factory operates 250 days per year, and the goal is to assess the supply chain costs for an annual demand of 440,000 brake pads.### Vendor Details| Certified Supplier | Order Size (Q) | Price per Unit (P) | Oversight Cost per Unit (Co) | Transport Cost per Unit (Ct) | Order Cost (Co) | Cost to Store One Unit One Year (Ch) | Order Lead Time in Days (L) ||--------------------|----------------|--------------------|-----------------------------|----------------------------|----------------|------------------------------------|----------------------------|| New Albany Mfg. | 44,000 | $15.14 | $0.00 | $0.66 | $300 | $1.45 | 43 || LaPlaya Mfg. | 88,000 | $14.08 | $0.47 | $0.93 | $365 | $1.00 | 101 |### Instructions1. **Total Supply Chain Cost Calculation**: - Use the Total Supply Chain Cost Excel template to compute costs for each supplier for the annual demand of 440,000 brake pads. - Do not round intermediate calculations. Round final answers to the nearest dollar.#### Cost Components for Each Order Quantity- **Order Quantity**: - New Albany: 44,000 units - LaPlaya: 88,000 units- **Total Procurement Cost**: To be calculated.- **Total Management Oversight Cost**: To be calculated.- **Total Annual Transportation Cost**: To be calculated.- **Annual Order Cost**: To be calculated.- **Annual Holding Cost**: To be calculated.- **Average Annual Pipeline Inventory Cost**: To be calculated.- **Total Supply Chain Costs**: To be calculated.#### Recommendation2. **Supplier and Order Quantity Decision**: - Decide on the supplier and order quantity based on total costs. - Select the appropriate supplier from the dropdown menu: - Based on total cost, the company

The expenses related to the planning, sourcing, manufacture, shipping, storage, and distribution of…

A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Certified Supplier New Albany Mfg. LaPlaya Mfg. Order Size (Q) 44,000 88,000 Price per Unit (P) Order quantity: 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: $15.14 $14.08 Oversight Cost per Unit (0) $0.00 $0.47 Transport Cost per Unit (Ct) $ $ $ $ $ $ $ $0.66 $0.93 b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose -Select- a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 440,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 44,000 units 88,000 units $ $ $ $ $ $ Order Cost (Co) S $300 $365 Cost to Store One Unit One Year (Ch) $1.45 $1.00 Order Lead Time in Days (L) 43 101 with corresponding order quantity of brake pads.

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...