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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. Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline invenory cost: Total supply chain costs: $ $ $ $ $ $ Certified Supplier New Albany Mfg. LaPlaya Mfg. Order Size (Q) 53,000 106,000 a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 742,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. S 53,000 units x x X x x b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose New Albany Mfg. $ $ $ $ $ $ Price per Unit (P) $12.21 $11.44 $ 106,000 units X X * Oversight Cost per Unit (0) $0.00 $0.20 X X x Transport. Cost per Unit (Ct) $0.87 $1.35 with corresponding order quantity of Order Cost (Co) $285 $330 Cost to Store One Unit One Year (Ch) $2.20 $1.80 brake pads. Order Lead Time in Days (L) 54 88

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. Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline invenory cost: Total supply chain costs: $ $ $ $ $ $ Certified Supplier New Albany Mfg. LaPlaya Mfg. Order Size (Q) 53,000 106,000 a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 742,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. S 53,000 units x x X x x b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose New Albany Mfg. $ $ $ $ $ $ Price per Unit (P) $12.21 $11.44 $ 106,000 units X X * Oversight Cost per Unit (0) $0.00 $0.20 X X x Transport. Cost per Unit (Ct) $0.87 $1.35 with corresponding order quantity of Order Cost (Co) $285 $330 Cost to Store One Unit One Year (Ch) $2.20 $1.80 brake pads. Order Lead Time in Days (L) 54 88

Practical Management Science
Practical Management Science
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...
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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. Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline invenory cost: Total supply chain costs: $ $ $ Certified Supplier New Albany Mfg. LaPlaya Mfg. a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 742,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. $ $ $ $ 53,000 units X X X $ $ $ $ $ $ Order Size (Q) 53,000 106,000 $ Price per Unit (P) $12.21 $11.44 106,000 units Oversight Cost per Unit (0) $0.00 $0.20 X X × Transport Cost per Unit (Ct) b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose New Albany Mfg. ✓ with corresponding order quantity of Order Cost (Co) $0.87 $1.35 $285 $330 Cost to Store One Unit One Year (Ch) $2.20 $1.80 brake pads. Order Lead Time in Days (L) 54 88
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. Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline invenory cost: Total supply chain costs: $ $ $ Certified Supplier New Albany Mfg. LaPlaya Mfg. a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 742,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. $ $ $ $ 53,000 units X X X $ $ $ $ $ $ Order Size (Q) 53,000 106,000 $ Price per Unit (P) $12.21 $11.44 106,000 units Oversight Cost per Unit (0) $0.00 $0.20 X X × Transport Cost per Unit (Ct) b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose New Albany Mfg. ✓ with corresponding order quantity of Order Cost (Co) $0.87 $1.35 $285 $330 Cost to Store One Unit One Year (Ch) $2.20 $1.80 brake pads. Order Lead Time in Days (L) 54 88
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