Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon tobe introduced to the market. The annual requirements (D) are 40,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in thefollowing table.Annual Freight CostsShipping Quantity (Q)Price/Unit(p)$28$30$31Annual HoldingCost/Unit (H)$5.60Lead TimeAnnual10.000(L) (days)SupplierAbbott20,000Administrative Cost$7,500$6,000$9,000$10.000$9.000$11.000$10,000$9.000$11,000$6.00$6.20Baker9Carpenter7Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular?UsingV and a shipping quantity ofV units is the lowest cost alternative, with annual total costs to Horizon Cellular of S. (Enter your responseas an integer.)

Given data: Annual Freight costs Shipping Quantity($) Shipping Quantity($) Price/Unit($) Annual…

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 40,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the following table. Annual Freight Costs Shipping Quantity (Q) Price/Unit (p) Annual Holding Cost/Unit (H) $5.60 S6.00 $6.20 Lead Time Annual 20,000 $7.500 $6,000 $9,000 Supplier Abbott 10,000 $10,000 $9,000 $11,000 (L) (days) Administrative Cost $28 $30 $31 S10.000 $9,000 $11,000 4 Baker Carpenter 7 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? Using V and a shipping quantity of V units is the lowest cost alternative, with annual total costs to Horizon Cellular of S. (Enter your response as an integer.)

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 40,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the following table. Annual Freight Costs Shipping Quantity (Q) Price/Unit (p) Annual Holding Cost/Unit (H) $5.60 S6.00 $6.20 Lead Time Annual 20,000 $7.500 $6,000 $9,000 Supplier Abbott 10,000 $10,000 $9,000 $11,000 (L) (days) Administrative Cost $28 $30 $31 S10.000 $9,000 $11,000 4 Baker Carpenter 7 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? Using V and a shipping quantity of V units is the lowest cost alternative, with annual total costs to Horizon Cellular of S. (Enter your response as an integer.)

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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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 40,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the attached table. Annual Freight Costs Shipping Quantity (Q) Supplier 10,000 20,000 Price/Unit (p) Annual Holding Cost/Unit (H) Lead Time (L) (days) Annual Administrative Cost Material Costs Abbott $11,000 $8,500 $29 $5.80 4 $11,000 $232,000.00 Baker $12,000 $9,500 $31 $6.20 3 $12,000 $1,240,000 Carpenter $9,000 $7,000 $28 $5.60 8 $9,000 $1,120,000 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? Using the supplier [X] and a shipping quantity of [X] units is the lowest cost alternative, with annual total costs to Horizon Cellular of [X]. (Quantity and Annual Total Costs are integer…
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: Supplier Freight CostsShipping 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?
Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 30,000 gallons (D) of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in the following table. D Annual Freight Costs Shipping Quantity (Q) Cost Supplier Sharps Winkler Price/Unit Annual Holding Lead Time (L) Annual Administrative 5,000 10,000 15,000 (P) Cost/Unit (H) $5,000 $3,300 $2,800 $3.80 $4,800 $3,200 $2,900 $3.70 (wks) 3 $0.76 $4,500 $0.74 4 $4,000 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using and a shipping quantity of ▼is the lowest cost alternative, with annual total costs to Eight Flags of $. (Enter your response as an integer.)
Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Meanwhile, Weekend Projects is a national chain of retail outlets and 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) Annual Lead Annual Supplier 20,000 40,000 Price/unit(p) Administrative Holding Cost/Unit(H) (L)(wks) $1.5 $1.8 Time Cost Bradley $30,000 $20,000 Alexander $25,000 $22,000 $6 $5 $20,000 $30,000 4 What is the total annual cost for Weekend Projects if the company chooses Alexander as the supplier and determines the shipping quantity at 40,000 units per shipment? $608,600 O $609,600 $606,600 O $607,600
Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 30,000 gallons (D) of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in the following table. D i Annual Freight Costs Shipping Quantity (Q) (wks) Cost Supplier Sharps Winkler 5,000 $5,200 $5,400 Price/Unit Annual Holding Lead Time (L) Annual Administrative 10,000 15,000 (P) Cost/Unit (H) $3,600 $3,200 $3.70 $3.700 $3,400 $0.74 5 $4,000 $5,000 $3.90 $0.78 6 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using and a shipping quantity of is the lowest cost alternative, with annual total costs to Eight Flags of $. (Enter your response as an integer.)
Chris Sandvig Irrigation, Inc., has summarizedthe price list from four potential suppliers of an undergroundcontrol valve. See the accompanying table. Annual usage is2,400 valves; order cost is $10 per order; and annual inventory holding costs are $3.33 per unit.Which vendor should be selected and what order quantityis best if Sandvig Irrigation wants to minimize total cost?
Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 800 valves; order cost is $7 per order; and annual inventory holding costs are $2.15 per unit. D Vendor A units at a time from Vendor C Vendor B Quantity 1-14 15-24 25-99 100-199 200-399 400+ Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost? Chris Sandvig Irrigation should order (enter your response as a whole number). Vendor A Price $35.00 34.75 33.55 32.35 31.15 30.75 Vendor D Vendor B Quantity 1-24 25-99 100-199 200-399 400+ Price $34.75 34.00 32.80 31.60 30.50 Vendor C Quantity 1-49 50-149 150-299 300+ Price $34.50 33.75 32.50 31.10 Vendor D Quantity 1-149 150-299 300+ Price $34.25 33.00 31.00
Company B is a retailer of mobile phones in Australia that works 250 days in a year. Themanager would like you to determine a minimum-cost inventory plan for an upcoming mobilephone to be launched in the market. They have collected the following information:• Annual demand: 750 phones• Phone cost: $1,005 each• Phone RRP: $1,149 each• Net weight: 167 g each• Tare weight: 257 g each• Annual inventory holding cost: 27.5%• Cost per order to replenish inventory: $81.71• Annual in-transit holding cost: 10%• Freight rate (per kg): $8.10• Freight-related charges (per shipment): $276.50 (i.e. handling fee, dangerous goodfee, and lithium battery fee)• Time to process order for freight: 2 day• Freight transit time: 5 daysThe manager wants you to determine the following information:a. Economic order quantityb. The total purchasing costc. The total ordering costd. The total inventory holding coste. The total transportation cost (by weight)f. The total freight-related cost (by shipment)g. The total…
Chris Sandvig Irrigation, Inc., has summarized theprice list from four potential suppliers of an underground controlvalve. See the accompanying table on the next page. Annual usageis 2,400 valves; order cost is $10 per order; and annual inventory holding costs are $3 .33 per unit.Which vendor should be selected and what order quantity isbest if Sandvig Irrigation wants to minimize total cost?
Cost tradeoff exists between transportation and inventory Select one: a. True b. False
Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager is determining a minimum-cost inventory plan for an upcoming phone to be launched in the market. She has collected the following information:• Annual demand: 800 phones• Phone cost: $1,093 each• Phone RRP: $1,249 each• Net weight: 169 g each• Tare weight: 111 g each• Annual inventory holding cost: 25%• Cost per order to replenish inventory: $70• Annual in-transit holding cost: 10%• Freight rate: $8.10 per kg• Time to process order for freight: 1 days• Freight transit time: 2 daysSolve this problem using a non-linear programming (NLP) model to determine the followings:g. The total cost for this inventory planh. The number of ordersi. Ordering pointj. The profit from this inventory plan need answer for g to j along with excel solver solution
Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager is determining a minimum-cost inventory plan for an upcoming phone to be launched in the market. She has collected the following information:• Annual demand: 800 phones• Phone cost: $1,093 each• Phone RRP: $1,249 each• Net weight: 169 g each• Tare weight: 111 g each• Annual inventory holding cost: 25%• Cost per order to replenish inventory: $70• Annual in-transit holding cost: 10%• Freight rate: $8.10 per kg• Time to process order for freight: 1 days• Freight transit time: 2 daysSolve this problem using a non-linear programming (NLP) model to determine the followings:j. The profit from this inventory plan