Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon to be introduced to the market. The annual requirements (D) are 60,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are inthe following table.DAnnual Freight CostsShipping Quantity (Q)Annual10,000$11,000SupplierAbbottBakerCarpenterPrice/Unit20,000(P)$8,500$30$6,500$31$5,500Annual HoldingCost/Unit (H)$6.00$6.20Lead Time(L) (days)47Administrative Cost$11,000$9.000$9,000$8,000$29$5.803$8,000Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular?Usingand a shipping quantity ofunits is the lowest cost alternative, with annual total costs to Horizon Cellular of S. (Enter your response as an integer.)

Given information:Annual Demand (D) = 60,000 unitsNumber of weeks = 250 daysDaily Demand (d) =…

Answered: Using and a shipping quantity of units…

MARKETING 2018

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ISBN:9780357033753

Author:Pride

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Chapter15: Retailing, Direct Marketing, And Wholesaling

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

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Using and a shipping quantity of units is the lowest cost alternative, with annual total costs to Horizon Cellular of S. (Enter your response as an integer)