Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters tothe 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 aparticular 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. Managementcollected data on the two suppliers, which are contained in the table below:Annual Freight CostsShipping Quantity (Q)AnnualPrice/Unit Annual Holding Lead Time (L)Cost/Unit (H)$1.83$1.8350,000SupplierBradleyAlexander10,00025,000$28.000(wks)(p)$9.15$9.15Administrative Cost$40,000$35,000$18,000$17,000$10,000$15,000$26,0007a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest?Usingand a shipping quantity ofunits is the lowest cost alternative, with annual total costs to Weekend Projects of $(Enter your responseas an integer.)

Cost analysis is one of the important business decisions that operations managers must make in a way…

Answered: Bradley Solutions and Alexander Limited…

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter15: Retailing, Direct Marketing, And Wholesaling

Section15.1: L.l.bean: Open 24/7, Click Or Brick

Problem 3VC

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The case above discusses design and innovation at Dyson Appliances Limited (DAL). As a purchasingmanager, advice on the best way to source the relevant material required in the production of DAL’s firstvacuum cleaner.

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