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. Transport Cost per Unit (Ct) $1.45 LaPlaya Mfg. $1.71 a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 340,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 34,000 units 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: b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose -Select- $ $ $ $ $ $ $ $ $ $ $ Order Size (Q) 34,000 68,000 Price per Unit (P) $9.02 $8.26 68,000 units Oversight Cost per Unit (0) $0.00 $0.40 ✓with corresponding order quantity of brake pads.. Order Cost (Co) $145 $210 Cost to Store One Unit One Year (Ch) $1.85 $1.65 Order Lead Time in Days (L) 50 72

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10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
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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.
Transport
Cost per
Unit (Ct)
$1.45
LaPlaya Mfg.
$1.71
a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 340,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar.
34,000 units
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:
b. What supplier and order quantity do you recommend based on total costs?
Based on total cost, the company should choose -Select-
$
$
$
$
$
$
$
$
$
$
$
Order
Size (Q)
34,000
68,000
Price per
Unit (P)
$9.02
$8.26
68,000 units
Oversight
Cost
per Unit (0)
$0.00
$0.40
✓with corresponding order quantity of
brake pads.
Order Cost
(Co)
$145
$210
Cost to Store
One Unit
One Year (Ch)
$1.85
$1.65
Order Lead
Time in
Days (L)
50
72
Transcribed Image Text: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. Transport Cost per Unit (Ct) $1.45 LaPlaya Mfg. $1.71 a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 340,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 34,000 units 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: b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose -Select- $ $ $ $ $ $ $ $ $ $ $ Order Size (Q) 34,000 68,000 Price per Unit (P) $9.02 $8.26 68,000 units Oversight Cost per Unit (0) $0.00 $0.40 ✓with corresponding order quantity of brake pads. Order Cost (Co) $145 $210 Cost to Store One Unit One Year (Ch) $1.85 $1.65 Order Lead Time in Days (L) 50 72
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