Wanda Lux must select a supplier for a plastic bottle and proprietary dispenser for its new hair shampoo. Three suppliers have placed bids; at Wanda's request, all bids are for a shipping quantity (Q)of 20,000 bottles with annual requirements (D) of 40,000 units. Wanda's factory operates 250 days a year. The following table shows each supplier's price, estimated annual freight costs, and currentlead times; management has added estimates for holding costs and administrative oversight costs for each supplier.UsingFreightCostsSupplier$3,000Dover PlasticsEvan & SonsFarley, Inc.$3,500$4,500a. Which of the three suppliers will provide the lowest annual cost to Wanda Lux?AnnualPrice/Unit Holding Cost/Unit(P)View an example Get more help.$5.10$5.00$5.15(H)$1.02$1.00$1.03LeadTime (L)(days)14171847Dis the lowest cost alternative, with annual total costs to Wanda Lux of $. (Enter your response rounded to the nearest whole number.)Annual AdministrativeCosts$4,000$3,000$5,000Clear allCheck answer

Annual demand = 40000 units Number of operating days = 250 Daily requirement = 40000/250 = 160…

Answered: Wanda Lux must select a supplier for a…

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

Problem 9a: Jones Surgicenter uses 90,000 bags of IV solution annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bag costs the center $1.50, inventory carrying costs are 20 percent, and the cost of placing an order with the supplier is $15. Problem 9b: Continuing with the previous question, what is the total inventory cost, TIC? Do not include the dollar sign in your answer.
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. Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Annual Administrative Supplier Sharps Winkler 5,000 $5.200 $5.400 15,000 $3.500 $3.500 Cost/Unit (H) $0.76 $0.80 10,000 (p) $3.80 (wks) Cost $5,000 $4,000 $3.800 $3,800 $4.00 3 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using V and a shipping quantity of is the lowest cost alternative, with annual total costs to Eight Flags of $. (Enter your response as an integer.)
Elaborate the role that Sourcing plays in the supply chain and key Components of Sourcing Decisions that managers need to make. ( 300 to 350 words )
Toys "R" Us had cost of goods sold of $12,355 million, ending inventory of $3,187 million, and average inventory of $2,343 million. Its days' sales in inventory equals:
Emery Pharmaceutical uses an unstable chemicalcompound that must be kept in an environment where both temperatureand humidity can be controlled. Emery uses 800 poundsper month of the chemical, estimates the holding cost to be 50%of the purchase price (because of spoilage), and estimates ordercosts to be $50 per order. The cost schedules of two suppliers areas follows: a) What is the economic order quantity for each supplier?b) What quantity should be ordered, and which supplier should be used?c) What is the total cost for the most economic order size?d) What factor(s) should be considered besides total cost?
What is the impact of lead times on the implementation of the Wilson approach in supply chain management?
South African rapper, Cassper Nyovest, has launched a business venture manufacturing his very own clothing and shoes. It has been noted that the price of some of the supplies (fabric, leather and cotton) are going to increase next month. Considering this statement, discuss the concept of future price increases as a role for holding inventory for Cassper. Note: Provide at least two application points.
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. Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Annual Administrative (p) $4.00 $3.90 (wks) Supplier Sharps Winkler Cost $4,000 $4,500 Cost/Unit (H) 5,000 $5,400 $5,000 10,000 $3,900 $3,600 15,000 $3,400 $3,300 $0.80 $0.78 4 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using V and a shipping quantity of is the lowest cost alternative, with annual total costs to Eight Flags of $ (Enter your response as an integer.)
Halifax Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product Lead time is normally distributed with an average of 6 weeks and a standard deviation of 1 week Demand is also a variable and normally distributed with a mean of 250 cigars per week and a standard deviation of 26 cigars Refer to the standard normal table for z-values. This exercise contains only parts a and b. a) For a 95% service level, what is the ROP? The reorder point is cigars (round your response to the nearest whole number) b) What is the ROP for a 98% service level? The reorder point is cigars (round your response to the nearest whole number)
Anchor Blue is a clothing retail company with store outlets primarily located across the mid- west and west coast states in America. The company mainly manufactures jeans denim and sports clothing The company utilizes an elaborate supply chain which spans various countries which include; Mexico, India and the Caribbean to perform its manufacturing as cost containment strategy. • Importantly to note the clothing retail industry is very volatile in nature, due to short fashion seasons, and fast- pace in of consumer demand. This results in short product shelf life which is largely attributed to systemic gaps in lead time from the production stage to getting the finished goods to the store shelf. The management team has great difficulty in ensuring that the providers of raw materials produce their shipments in time, to meet production. State what measures can be taken by anchor blue to ensure that the suppliers deliver their shipment on their agreed schedules.
Corral Cartage leases trucks to service its shipping contracts. Larger trucks have cheaper operating costs if there is sufficient business, but are more expensive if they are not full. CC has estimates of monthly shipping demand. What comparison method(s) would be appropriate for choosing which trucks to lease? 1.Present Worth(PW) 2.Annual Worth(AW) 3.Payback Period
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?

SEE MORE QUESTIONS

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