January 2018
Intermediate to advanced
480 pages
236h 9m
English
Eagle Electric Repair is a repair facility for several major electric appliance manufacturers. Eagle wants to find a low-cost supplier for an electric relay switch used in many appliances. The annual requirements for the relay switch (D) are 100,000 units. Eagle operates 250 days a year. The following data are available for two suppliers of the part, Kramer and Sunrise:
Supplier |
Freight Costs Shipping Quantity (Q) |
Price/Unit (p) |
Carrying Cost/Unit (H ) |
Lead Time (L) (days) |
Administrative Costs |
|
|---|---|---|---|---|---|---|
2,000 |
10,000 |
|||||
Kramer |
$30,000 |
$20,000 |
$5.00 |
$1.00 |
5 |
$10,000 |
Sunrise |
$28,000 |
$18,000 |
$4.90 |
$0.98 |
9 |
$11,000 |
Which supplier will provide the lowest annual total costs?
The daily requirements ...
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