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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) Annual Price/Unit Annual Holding Lead Time (L) Cost/Unit (H) $1.43 (wks) Supplier Bradley Alexander 10,000 $40,000 $30,000 50,000 S26,000 $18,000 S25,000 $17,000 25,000 (d) S7.15 Administrative Cost $15,000 $10,000 S7.15 $1.43 6 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? Using Alexander and a shipping quantity of 10,000 units is the lowest cost alternative, with annual total costs to Weekend Projects of $ 767454. (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) Annual Price/Unit Annual Holding Lead Time (L) Cost/Unit (H) $1.43 (wks) Supplier Bradley Alexander 10,000 $40,000 $30,000 50,000 S26,000 $18,000 S25,000 $17,000 25,000 (d) S7.15 Administrative Cost $15,000 $10,000 S7.15 $1.43 6 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? Using Alexander and a shipping quantity of 10,000 units is the lowest cost alternative, with annual total costs to Weekend Projects of $ 767454. (Enter your response as an integer.)

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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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) $1.43 Annual Supplier Bradley Alexander Administrative Cost $15,000 $10.000 10.000 25,000 50,000 (p) $7. 15 (wks) $40,000 $30,000 $26,000 $18.000 $25,000 $17,000 $7,15 $1.43 6 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? Using Alexander and a shipping quantity of 10,000 units is the lowest cost alternative, with annual total costs to Weekend Projects of $ 767454. (Enter your response as an integer.)
Transcribed Image Text: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) $1.43 Annual Supplier Bradley Alexander Administrative Cost $15,000 $10.000 10.000 25,000 50,000 (p) $7. 15 (wks) $40,000 $30,000 $26,000 $18.000 $25,000 $17,000 $7,15 $1.43 6 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? Using Alexander and a shipping quantity of 10,000 units is the lowest cost alternative, with annual total costs to Weekend Projects of $ 767454. (Enter your response as an integer.)
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