Freight Costs Shipping Quantity (Q) Supplier 2,000 10,000 Price/Unit (p) Carrying Cost/Unit (H) Lead Time (4) (days) Administrative Costs Kramer $30,000 $20,000 $5.00 $1.00 $10,000 Sunrise $28,000 $18,000 $4.90 $0.98 $11,000
Freight Costs Shipping Quantity (Q) Supplier 2,000 10,000 Price/Unit (p) Carrying Cost/Unit (H) Lead Time (4) (days) Administrative Costs Kramer $30,000 $20,000 $5.00 $1.00 $10,000 Sunrise $28,000 $18,000 $4.90 $0.98 $11,000
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
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, Kramer and Sunrise, for the part: Which supplier will provide the lowest annual total costs?
Transcribed Image Text:Freight Costs
Shipping Quantity (Q)
Supplier
2,000
10,000
Price/Unit (p)
Carrying Cost/Unit (H)
Lead Time (4) (days)
Administrative Costs
Kramer
$30,000
$20,000
$5.00
$1.00
$10,000
Sunrise
$28,000
$18,000
$4.90
$0.98
$11,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.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.