Couture Jeans orders high-quality denim fabric from two different suppliers: Designer Fabrics and Cannon Cotton. Couture would like to use only one of the suppliers in the future. Due to variations in quality, Couture would need to inspect 20% of Designer's 30-yard bolts (rolls) and 30% of Cannon's. The following data refer to costs associated with the two suppliers.

Required
1.What is the relevant cost of purchasing from Designer Fabrics and Cannon Cotton?
2.What factors other than cost should Couture Jeans consider?

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Designer Cannon Number of orders per vear Annual bolts demanded Price per bolt Ordering cost per order Inspection cost per bolt Average inventory level Expected number of stockouts Stockout cost of rush order Estimated number of jeans returned by customers because of defective fabric Cost of fixing jeans returned by customers because of defective fabric Opportunity cost of investment Other carrying costs per bolt per vear 50 2,000 S 200 S 150 S 30 20 10 S 20 100 S 25 50 2,000 S 195 S 200 S 30 20 10 200 S 25 15% 15%