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)Price/Unit Annual Holding Lead Time (L)Cost/Unit (H)AnnualSupplierBradleyAlexander10,000$35,00025,000$27,000$40,000 $28,000 $18,00050,000$17,000(p)(wks)Administrative Cost$8.10$8.10$1.62$1.62$15,000$10,0006a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest?UsingV and a shipping quantity ofunits is the lowest cost alternative, with annual total costs to Weekend Projects of $(Enter your responseas an integer.)b. Before management could make a decision, another option became available. Zelda Tools offered the tool set for only $8.00; however, the lead time is longer thanthe other two suppliers. Zelda is a new supplier and has not been in the industry very long. Additional data for Zelda are in the table below:Annual Freight CostsShipping Quantity (Q)Price/UnitAnnual Holding Lead Time (L) Annual AdministrativeCost/Unit (H)Supplier10,000Cost25,000$25,00050,000(p)$8.00(wks)Zelda$45,000$17,000$1.608Management has begun to assess the administrative costs to manage the contract with Zelda. What is the lowest level of administrative costs at which WeekendProjects would be indifferent between using Zelda versus the option you chose in part (a)?Weekend Projects would be indifferent if administrative costs are $(Enter your response as an integer.)

Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters to the 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 a particular 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. Management collected data on the two suppliers, which are contained in the table below: Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Cost/Unit (H) $1.62 Annual Supplier Bradley Alexander Administrative Cost 10,000 $35,000 $40,000 25,000 50,000 (p) (wks) $27,000 $28,000 $17,000 $18,000 $8.10 $15,000 $10,000 $8.10 $1.62 5 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? Using v and a shipping quantity of V units is the lowest cost alternative, with annual total costs to Weekend Projects of S . (Enter your response as an integer.) b. Before management could make a decision, another option became available. Zelda Tools offered the tool set for only $8.00; however, the lead time is longer than the other two suppliers. Zelda is a new supplier and has not been in the industry very long. Additional data for Zelda are in the table below: Annual Freight Costs Shipping Quantity (Q) 25,000 $25,000 Price/Unit Annual Holding Lead Time (L) Annual Administrative (p) $8.00 Supplier 10,000 50,000 Cost/Unit (H) (wks) Cost Zelda $45,000 $17,000 $1.60 8 Management has begun to assess the administrative costs to manage the contract with Zelda. What is the lowest level of administrative costs at which Weekend Projects would be indifferent between using Zelda versus the option you chose in part (a)? Weekend Projects would be indifferent if administrative costs are $ (Enter your response as an integer.)

Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters to the 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 a particular 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. Management collected data on the two suppliers, which are contained in the table below: Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Cost/Unit (H) $1.62 Annual Supplier Bradley Alexander Administrative Cost 10,000 $35,000 $40,000 25,000 50,000 (p) (wks) $27,000 $28,000 $17,000 $18,000 $8.10 $15,000 $10,000 $8.10 $1.62 5 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? Using v and a shipping quantity of V units is the lowest cost alternative, with annual total costs to Weekend Projects of S . (Enter your response as an integer.) b. Before management could make a decision, another option became available. Zelda Tools offered the tool set for only $8.00; however, the lead time is longer than the other two suppliers. Zelda is a new supplier and has not been in the industry very long. Additional data for Zelda are in the table below: Annual Freight Costs Shipping Quantity (Q) 25,000 $25,000 Price/Unit Annual Holding Lead Time (L) Annual Administrative (p) $8.00 Supplier 10,000 50,000 Cost/Unit (H) (wks) Cost Zelda $45,000 $17,000 $1.60 8 Management has begun to assess the administrative costs to manage the contract with Zelda. What is the lowest level of administrative costs at which Weekend Projects would be indifferent between using Zelda versus the option you chose in part (a)? Weekend Projects would be indifferent if administrative costs are $ (Enter your response as an integer.)

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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