Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Meanwhile, Weekend Projects is a national chain of retail outlets and wants to find a supplier for a 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. Management collected data on the two suppliers, which are contained in the table below: Annual Freight Costs Shipping Quantity (Q) Annual Lead Annual Supplier 20,000 40,000 Price/unit(p) Administrative Holding Cost/Unit(H) (L)(wks) $1.5 $1.8 Time Cost Bradley $30,000 $20,000 Alexander $25,000 $22,000 $20,000 $30,000 $6 4 $5 What is the total annual cost for Weekend Projects if the company chooses Alexander as the supplier and determines the shipping quantity at 40,000 units per shipment? $608,600 O $609,600 O $606,600 O $607,600
Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Meanwhile, Weekend Projects is a national chain of retail outlets and wants to find a supplier for a 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. Management collected data on the two suppliers, which are contained in the table below: Annual Freight Costs Shipping Quantity (Q) Annual Lead Annual Supplier 20,000 40,000 Price/unit(p) Administrative Holding Cost/Unit(H) (L)(wks) $1.5 $1.8 Time Cost Bradley $30,000 $20,000 Alexander $25,000 $22,000 $20,000 $30,000 $6 4 $5 What is the total annual cost for Weekend Projects if the company chooses Alexander as the supplier and determines the shipping quantity at 40,000 units per shipment? $608,600 O $609,600 O $606,600 O $607,600
Chapter15: Retailing, Direct Marketing, And Wholesaling
Section15.1: L.l.bean: Open 24/7, Click Or Brick
Problem 3VC
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you