Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation. Yeast & Brewery Company Quantity Unit Price 1-399 400-899 900+ $16.91 $16.23 $15.69 Crust n Krumbs Company Quantity 1-499 500-999 1000+ Unit Price $16.23 What is the optimal order quantity? [Select] $15.91 $15.69 What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units [Select] Which supplier, based on all options with regard to discounts, should be used? [Select] What is the total annual cost of ordering, inventory holding, and purchasing the strategic ingredient, round to whole number? [Select]
Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation. Yeast & Brewery Company Quantity Unit Price 1-399 400-899 900+ $16.91 $16.23 $15.69 Crust n Krumbs Company Quantity 1-499 500-999 1000+ Unit Price $16.23 What is the optimal order quantity? [Select] $15.91 $15.69 What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units [Select] Which supplier, based on all options with regard to discounts, should be used? [Select] What is the total annual cost of ordering, inventory holding, and purchasing the strategic ingredient, round to whole number? [Select]
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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![Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The
item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and
annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation.
Yeast & Brewery Company
Quantity
1-399
400-899
900+
Unit Price
$16.91
$16.23
$15.69
Crust n Krumbs Company
Quantity
1-499
500-999
1000+
Unit Price
$16.23
What is the optimal order quantity? [Select]
$15.91
$15.69
What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units
Which supplier, based on all options with regard to discounts, should be used? [Select]
[Select]
What is the total annual cost of ordering, inventory holding, and purchasing the strategic ingredient, round to whole number? [Select]
If the quality of Crust n Krumbs turns out to be superior, which vendor would you select? [Select]
What would be the extra cost for the superior quality in choosing Crust n Krumbs, round to whole number? [Select]
The % cost increase in choosing Crust n Krumbs over Yeast & Brewery? By compared to the total cost (ordering, holding & purchasing) from the two suppliers, then
calculate the % on the premium paid for the superior quality. [Select]
Ashlee learned that the actual usage has gone up to 3,000 lbs. per month, what would be the incremental cost annually in choosing Crust n Krumbs. By compared to
the total cost (ordering, holding & purchasing) from the two suppliers, based on 3,000 lbs. per month demand. [Select]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7d3ae8d7-5658-4ed4-9668-4ee58a946812%2F83d61507-1122-4e62-9876-31496476acbd%2Fpgsy5gc_processed.png&w=3840&q=75)
Transcribed Image Text:Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The
item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and
annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation.
Yeast & Brewery Company
Quantity
1-399
400-899
900+
Unit Price
$16.91
$16.23
$15.69
Crust n Krumbs Company
Quantity
1-499
500-999
1000+
Unit Price
$16.23
What is the optimal order quantity? [Select]
$15.91
$15.69
What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units
Which supplier, based on all options with regard to discounts, should be used? [Select]
[Select]
What is the total annual cost of ordering, inventory holding, and purchasing the strategic ingredient, round to whole number? [Select]
If the quality of Crust n Krumbs turns out to be superior, which vendor would you select? [Select]
What would be the extra cost for the superior quality in choosing Crust n Krumbs, round to whole number? [Select]
The % cost increase in choosing Crust n Krumbs over Yeast & Brewery? By compared to the total cost (ordering, holding & purchasing) from the two suppliers, then
calculate the % on the premium paid for the superior quality. [Select]
Ashlee learned that the actual usage has gone up to 3,000 lbs. per month, what would be the incremental cost annually in choosing Crust n Krumbs. By compared to
the total cost (ordering, holding & purchasing) from the two suppliers, based on 3,000 lbs. per month demand. [Select]
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