The supply chain manager for a French airframe manufacturer in Toulouse is weighing options among four different suppliers of toggle switches. The manufacturer uses 300,000 toggle switches a year (a work year is 250 days) and prefers to order 15,000 at a time. All costs shown in the following table are based on that order quantity.   ​ Albanian Bulgarian Czech Danish Procurement $7.65 $7.75 $14.95 $11.45 Mgt oversight $6.55 $6.35 $6.75 $7.85 Unit transport $0.60 $6.70 $3.30 $3.70 Order cost $625.00 $630.20 $626.30 $632.20 Holding cost $4.55 $8.45 $3.75 $8.95 Lead time $60.00 $64.20 $59.50 $61.10 Which supplier has the lowest total supply chain cost?   a. Danish   b. Bulgarian   c. Czech   d. Albanian

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The supply chain manager for a French airframe manufacturer in Toulouse is weighing options among four different suppliers of toggle switches. The manufacturer uses 300,000 toggle switches a year (a work year is 250 days) and prefers to order 15,000 at a time. All costs shown in the following table are based on that order quantity.

 

Albanian

Bulgarian

Czech

Danish

Procurement

$7.65

$7.75

$14.95

$11.45

Mgt oversight

$6.55

$6.35

$6.75

$7.85

Unit transport

$0.60

$6.70

$3.30

$3.70

Order cost

$625.00

$630.20

$626.30

$632.20

Holding cost

$4.55

$8.45

$3.75

$8.95

Lead time

$60.00

$64.20

$59.50

$61.10

Which supplier has the lowest total supply chain cost?

  a.

Danish

  b.

Bulgarian

  c.

Czech

  d.

Albanian

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