Describe quantities would your supplier selection change, Operation Management

Assignment Help:

Your company assembles five different models of a motor scooter that is sold in specialty store in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,000 each. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data has been collected

Requirements (annual forecast) = 12,000 Units

Weight per engine = 22 pounds

Order processings cost = $125 per order

Inventory carry cost = 20 percent of the average value of inventory per year

Note: Assume that half of lot size is in inventory on average (1,000/2= 500units)

Two qualified suppliers have submitted the following quatations:

Unit Price Supplier 1 Supplier 2

1 to 999 units/order $510 $505

1,000 to 2,999 500 498

3,000 + 490 488

tooling costs $22,000 $20,000

Distance 125Miles 100Miles

Your assistant has obtained the following freight rates from your carrier:

Truckload (40,000 each load): $0.80 per ton-mile

Less-Than-Truckload: $1.20 per ton-mile

A.) Perform a total cost of ownership analysis and select a supplier.

B.) If you could move the lot size up to ship in truckload quantities would your supplier selection change?


Related Discussions:- Describe quantities would your supplier selection change

Explain project often require trade-offs, Project often require trade-offs ...

Project often require trade-offs among all of the following EXCEPT- A. Scope (size) B. Cost C. Schedule D. Programs

Explain what type of transmission path, What type of transmission path does...

What type of transmission path does a fixed wireless signal require? a. line-of-sight b. non-line-of-sight c. omni-directional d. code divided

Explain a corporation is chartered under state laws, A corporation a. is...

A corporation a. is chartered under state laws. b. is chartered under federal laws c. remains in existence only as long as its owners are alive. d. shifts liability of

Define uninformed aspiring international business executive, "U.S Managemen...

"U.S Management theories contain a number of idiosyncrasies not necessarily shared by management elsewhere"...and then proceeds to mention three specific examples. Why might these

Assignment help, discuss the advisability using modular assemblies in manuf...

discuss the advisability using modular assemblies in manufacturing or what are the advantages and disadvantages?

What are two aspects of self-concept, ------------- and--------------------...

------------- and---------------------are two related aspects of self-concept/1. Self-esteem, self-monitoring/2.self-esteem, self-assessment, 3 self moitoring;self-assessment/4 sel

Explain bp''s first problem, Describe BP'S first problem, which involved th...

Describe BP'S first problem, which involved the firms IT function. Discuss BP'S solution to this problem.

Explain what variables should be eliminated, What do you think is the purpo...

What do you think is the purpose of the U.S. Census, which takes place every 10 years? What are some of the variables recorded for the U.S. population? How are these variables usef

Management, AskIntroduction The present taxation law case deals with the I...

AskIntroduction The present taxation law case deals with the Individual named James Cookie (‘James’) who is a ships officer and employed by the corporation Sails International Inc

Explain invest more money in the organization''s staffing sys, If your CEO ...

If your CEO asked you why she should invest more money in the organization's staffing systems, what would you tell her?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd