Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters to the 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 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: Using Annual Freight Costs Shipping Quantity (Q) Supplier Bradley Alexander Annual 10,000 25,000 50,000 $40,000 $26,000 $19,000 $7.15 $30,000 $28,000 $17,000 $7.15 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? and a shipping quantity of Price/Unit Holding Cost/Unit Lead Time (L) (P) (wks) (H) $1.43 $1.43 6 4 Annual Administrative Cost $10,000 $10,000 units is the lowest cost alternative, with annual total costs to Weekend Projects of $. (Enter your response as an integer.)
Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters to the 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 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: Using Annual Freight Costs Shipping Quantity (Q) Supplier Bradley Alexander Annual 10,000 25,000 50,000 $40,000 $26,000 $19,000 $7.15 $30,000 $28,000 $17,000 $7.15 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? and a shipping quantity of Price/Unit Holding Cost/Unit Lead Time (L) (P) (wks) (H) $1.43 $1.43 6 4 Annual Administrative Cost $10,000 $10,000 units is the lowest cost alternative, with annual total costs to Weekend Projects of $. (Enter your response as an integer.)
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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Transcribed Image Text:Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters to the 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 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
Price/Unit Holding Cost/Unit Lead Time (L)
(p)
(wks)
Supplier 10,000 25,000 50,000
Bradley $40,000 $26,000 $19,000
Alexander $30,000 $28,000 $17,000
$7.15
$7.15
a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest?
and a shipping quantity of
Using
Annual Freight Costs
Shipping Quantity (Q)
-w an example Get more help.
(H)
$1.43
$1.43
6
4
Annual
Administrative Cost
$10,000
$10,000
units is the lowest cost alternative, with annual total costs to Weekend Projects of $. (Enter your response as an integer.)
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