Supply Chain Management You are responsible to evaluate three bids to supply surge protector outlets for 140
Fantastic news! We've Found the answer you've been seeking!
Question:
Supply Chain Management
You are responsible to evaluate three bids to supply surge protector outlets for 140 server racks. PowerPort submits a bid of $170 per unit with a defect rate of 3%; SureFlow bid is $265 per unit with a defect rate of 1%; and Volta Link bid is $300 per unit with a defect rate of 0.5%. If a surge protector outlet fails, it costs an average of $3200 in losses and herding costs. Considering the total purchasing cost and failure cost, which supplier would you select?
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
Posted Date: