Your assistant has obtained the following freight rates from your carrier: Truckload (53, e00 lbs. each load): Less-than-truckload: $0.80 per ton-mile $1.20 per ton-mile Note: Per ton-mile = 2,000 Ibs. per mile. a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.) Supplier 1 Supplier 2 Total cost 6,838,020 S 6.804,740
Your assistant has obtained the following freight rates from your carrier: Truckload (53, e00 lbs. each load): Less-than-truckload: $0.80 per ton-mile $1.20 per ton-mile Note: Per ton-mile = 2,000 Ibs. per mile. a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.) Supplier 1 Supplier 2 Total cost 6,838,020 S 6.804,740
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...
Related questions
Question
Need help! A-1 is incorrect.

Transcribed Image Text:Your assistant has obtained the following freight rates from your carrier:
Truckload (53,e00 lbs. each load):
Less-than-truckload:
$0.80 per ton-mile
$1.20 per ton-mile
Note: Per ton-mile = 2,000 lbs. per mile.
a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.)
Supplier 1
Supplier 2
Total cost
6,838,020S
6.804,740

Transcribed Image Text:Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company
uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming
year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,050 units.
Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree
to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use.
The following data have been collected
Requirements (annual forecast)
Weight per engine
Order processing cost
Inventory carry cost
12,600 units
25 pounds
165 per order
20 percent of the average value of inventory per year
Note: Assume that half of lot size is in inventory on average (1.050/2 = 525 units).
Two qualified suppliers have submitted the following quotations:
SUPPLIER 1 SUPPLIER 2
UNIT PRICE
ORDER QUANTITY
1 to 1,499 units/order
1,500 to 2,099 units/order
3,000 + units/order
Tooling costs
Distance
UNIT PRICE
24
534
532
532
S30
529
526
$27,000
130 miles
$24,800
100 miles
Your assistant has obtained the following freight rates from your carrier
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

Recommended textbooks for you

Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,

Operations Management
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
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


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.