Solution-Course in supply chain management

Course in supply chain management

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Reference no: EM131314331

Abigail's Auto Repair uses 500 oil filters every month. Abigail has just taken a course in supply chain management, and as a result has solicited two new suppliers for these packs, with the following price structures:

Supplier A		Supplier B
Quantity	Unit Price	Quantity	Unit Price
1-299	$9.00	1-299	$9.50
300-599	8.00	300-449	8.50
600+	7.00	450+	7.00

Using either supplier, Abigail pays $20 to place an order, and annual holding cost is 20% of purchase price. Which supplier should be chosen, at what order quantity? What will be the total cost? Support your recommendation with numerical analysis.

Remember to show your calculations in order to receive full credit!

Reference no: EM131314331

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Course in supply chain management

Reference no: EM131314331

Reference no: EM131314331

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