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A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Certified Supplier New Albany Mfg. LaPlaya Mfg. Order Size (Q) 44,000 88,000 Price per Unit (P) Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline inventory cost: Total supply chain costs: $15.14 $14.08 Oversight Cost per Unit (0) $0.00 $0.47 Transport Cost per Unit (Ct) $ $ $ $ $ $ $ $0.66 $0.93 b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose -Select- a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 440,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 44,000 units 88,000 units $ $ $ $ $ $ Order Cost (Co) S $300 $365 Cost to Store One Unit One Year (Ch) $1.45 $1.00 Order Lead Time in Days (L) 43 101 with corresponding order quantity of brake pads.

A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Certified Supplier New Albany Mfg. LaPlaya Mfg. Order Size (Q) 44,000 88,000 Price per Unit (P) Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline inventory cost: Total supply chain costs: $15.14 $14.08 Oversight Cost per Unit (0) $0.00 $0.47 Transport Cost per Unit (Ct) $ $ $ $ $ $ $ $0.66 $0.93 b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose -Select- a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 440,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 44,000 units 88,000 units $ $ $ $ $ $ Order Cost (Co) S $300 $365 Cost to Store One Unit One Year (Ch) $1.45 $1.00 Order Lead Time in Days (L) 43 101 with corresponding order quantity of brake pads.

Practical Management Science
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...
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Supplier Procurement cost/unit, P Management oversight cost/unit, O Unit transportation cost Ct Order cost/order, Co Holding cost per unit, Ch Lead time, L Annual Demand, D Order Quantity, Q Average number of orders/year (D/Q) Average daily demand (D/250) Total procurement cost Total management oversight cost Total annual transportation cost Annual order cost Annual holding cost Average annual pipeline inventory cost Total supply chain costs Japanese $7.65 $0.55 $0.60 $625.00 $1.35 60 400000 40000 10.00 1600.00 $3,060,000.00 $220,000.00 $240,000.00 Mexican $7.60 $0.65 $0.35 $400.00 $1.35 45 Chinese $7.00 $1.25 $0.75 $850.00 $1.35 120 $3,040,000.00 $2,800,000.00 $260,000.00 $500,000.00 $140,000.00 $300,000.00 $4,000.00 $27,000.00 $6,250.00 $27,000.00 $129,600.00 $97,200.00 $259,200.00 $3,682,850.00 $3,568,200.00 $3,894,700.00 $8,500.00 $27,000.00
Transcribed Image Text:Supplier Procurement cost/unit, P Management oversight cost/unit, O Unit transportation cost Ct Order cost/order, Co Holding cost per unit, Ch Lead time, L Annual Demand, D Order Quantity, Q Average number of orders/year (D/Q) Average daily demand (D/250) Total procurement cost Total management oversight cost Total annual transportation cost Annual order cost Annual holding cost Average annual pipeline inventory cost Total supply chain costs Japanese $7.65 $0.55 $0.60 $625.00 $1.35 60 400000 40000 10.00 1600.00 $3,060,000.00 $220,000.00 $240,000.00 Mexican $7.60 $0.65 $0.35 $400.00 $1.35 45 Chinese $7.00 $1.25 $0.75 $850.00 $1.35 120 $3,040,000.00 $2,800,000.00 $260,000.00 $500,000.00 $140,000.00 $300,000.00 $4,000.00 $27,000.00 $6,250.00 $27,000.00 $129,600.00 $97,200.00 $259,200.00 $3,682,850.00 $3,568,200.00 $3,894,700.00 $8,500.00 $27,000.00
A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Certified Supplier New Albany Mfg. LaPlaya Mfg. Order Size (Q) 44,000 88,000 Price per Unit (P) Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline inventory cost: Total supply chain costs: $15.14 $14.08 Oversight Cost per Unit (0) $0.00 $0.47 LA tA tA tA a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 440,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 88,000 units $ tA $ LA Transport Cost per Unit (Ct) GA $0.66 $0.93 44,000 units b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose -Select- $ $ $ $ $ $ Order Cost (Co) SA $300 $365 Cost to Store One Unit One Year (Ch) $1.45 $1.00 Order Lead Time in Days (L) 43 101 with corresponding order quantity of brake pads.
Transcribed Image Text:A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Certified Supplier New Albany Mfg. LaPlaya Mfg. Order Size (Q) 44,000 88,000 Price per Unit (P) Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline inventory cost: Total supply chain costs: $15.14 $14.08 Oversight Cost per Unit (0) $0.00 $0.47 LA tA tA tA a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 440,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 88,000 units $ tA $ LA Transport Cost per Unit (Ct) GA $0.66 $0.93 44,000 units b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose -Select- $ $ $ $ $ $ Order Cost (Co) SA $300 $365 Cost to Store One Unit One Year (Ch) $1.45 $1.00 Order Lead Time in Days (L) 43 101 with corresponding order quantity of brake pads.
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