Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters tothe occasional fixer-upper who would prefer to get the job done fast rather than investing in a well-appointed tool box. Weekend Projects wants to find a supplier fora particular tool set that promises to be a big seller. Expected annual sales are 100,000 units (D). Weekend's warehouses operate 50 weeks a year. Managementcollected data on the two suppliers, which are contained in the table below:Annual Freight CostsShipping Quantity (Q)Price/Unit Annual Holding Lead Time (L)AnnualSupplierBradleyAlexander50.000$18,000$17.000Cost/Unit (H)$1.43$1.4310,00025,000(p)$7.15(wks)Administrative Cost$40,000$30,000$26.000$25.000$15,000S7.156$10.000a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest?Usingand a shipping quantity ofunits is the lowest cost alternative, with annual total costs to Weekend Projects of $. (Enter your responseas an integer.)

Answered: Image /qna-images/answer/f62979cb-fac1-4dcf-b928-72e345a5da25.jpg

Answered: a. Which of the two suppliers would…

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...

See similar textbooks

Similar questions

A hospital treating COVID patients needs to buy gloves, gowns, and masks for the health care professionals working at the facility. The hospital has two suppliers who can supply the items. The cost, and the maximum number of each item each supplier can provide is given below: Supplier A Supplier B Gloves (cost, max units) ($0.30/unit, 20,000) ($0.35/unit, 11,000) Gowns Masks ($2.00, ($2.50, 5000) 10,000) ($1.75, 7000) ($2.55, 9,500) The hospital immediately needs 30,000 units of gloves, 5500 units of gowns, and 12,500 masks. To account for the economies of scale in logistics, the Supplier A has a requirement of at least 25,000 units in the order, while Supplier B has a requirement of a minimum order size of 10,000 units and a maximum order size of 20,000. What is is the minimum total cost of order that the hospital needs to pay to the suppliers to get the items?
Reactions and additional comments: Per the textbook definition, the term bullwhip effect “Describes the distortions in a supply chain caused by changes in customer demand, resulting in large swings in inventory levels as the orders ripple upstream from the retailer to the distributor and manufacturer” (Wallace, 2020, p. 137). The term is derived from physics. When cracking a whip, someone just has to snap their wrist and it causes a wave like effect that increases with a chain reaction. The bullwhip effect is a term that was first used in the 1990s. The makers of Pampers had many changes in order volumes, when usually diapers were bought at a constant rate (The Bullwhip effect : History and solutions, 2021). This caused the company to receive hard hits in demand with each new order from the retailers. For example, during the Covid-19 pandemic, everyone was told to stay home, go to school from home, and work from home. This caused the need for many more computers and electronic…
Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 1,100 valves; order cost is $10 per order; and annual inventory holding costs are $7.55 per unit. D D Vendor A Quantity 1-14 15-24 25-99 100-199 200-399 400+ Price $35.00 34.75 33.55 32.35 31.15 30.75 Vendor C Vendor D Vendor A D Vendor B Vendor B Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost? Chris Sandvig Irrigation should order units at a time from (enter your response as a whole number). Quantity 1-24 25-99 100-199 200-399 400+ Price $34.75 34.00 32.80 31.60 30.50 MacBook Air O Vendor C Quantity 1-49 50-149 150-299 300+ Price $34.50 33.75 32.50 31.10 Vendor D Quantity 1-149 150-299 300+ Price $34.25 33.00 31.00 Next
Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon to be introduced to the market. The annual requirements (D) are 40,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the attached table. Annual Freight Costs Shipping Quantity (Q) Supplier 10,000 20,000 Price/Unit (p) Annual Holding Cost/Unit (H) Lead Time (L) (days) Annual Administrative Cost Material Costs Abbott $11,000 $8,500 $29 $5.80 4 $11,000 $232,000.00 Baker $12,000 $9,500 $31 $6.20 3 $12,000 $1,240,000 Carpenter $9,000 $7,000 $28 $5.60 8 $9,000 $1,120,000 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? Using the supplier [X] and a shipping quantity of [X] units is the lowest cost alternative, with annual total costs to Horizon Cellular of [X]. (Quantity and Annual Total Costs are integer…
In this problem, your company is a distributor of products. You serve as an inventory manager for the regional distribution center (DC) here in the Atlanta area. In this role, you schedule the purchase and shipment of products from various suppliers inbound to the Atlanta DC. Once you receive the products at the DC, they are stored in inventory until they are picked, packed, and shipped outbound to your company's downstream customers in response to orders. For each of your products, you currently use a single, dedicated supplier. Each of your suppliers ships their products to you from their facility using trucking services, and they provide you with choices of different LTL or truckload trucking carriers depending on your shipment size. Consider managing inventory now for product 101 produced by Supplier A. Currently, you face demand for product 101 of about 200 units per week. Each unit of product 101 has a purchase cost p of $500 and you decide to value your inventory at the slightly…
Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 30,000 gallons (D) of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in the following table. D i Annual Freight Costs Shipping Quantity (Q) (wks) Cost Supplier Sharps Winkler 5,000 $5,200 $5,400 Price/Unit Annual Holding Lead Time (L) Annual Administrative 10,000 15,000 (P) Cost/Unit (H) $3,600 $3,200 $3.70 $3.700 $3,400 $0.74 5 $4,000 $5,000 $3.90 $0.78 6 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using and a shipping quantity of is the lowest cost alternative, with annual total costs to Eight Flags of $. (Enter your response as an integer.)
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) 30,000 60,000 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: $14.38 $13.55 Oversight Cost per Unit (0) $0.00 $0.37 $ LA GA $ LA tA a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 480,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 30,000 units 60,000 units tA Transport Cost…
Based on the article above, explain how inventory management can provide competitive advantage for Amazon.com!

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS

a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? Using and a shipping quantity of units is the lowest cost alternative, with annual total costs to Weekend Projects of S (Enter your response as an integer.)