Your company sells sports apparel and the current supplier for one of the one of triathlon kits you sell is Mexico. The data for Mexico is listed below in the chart. Youre are considering three additional suppliers: one in Vietnam, Singapore and one in China.

The numbers for a potential Vietnam Supplier are: procurement $7.60, managerial costs $0.65, transportation $0.35, order cost $400, and lead time 95 days.

The numbers for a potential Singapore Supplier are: procurement $7.70, managerial costs $0.55, transportation $0.35, order cost $380, and lead time 95 days.

The numbers for a potential Chinese Supplier are procurement $7.00, managerial costs $1.25, transportation $0.75, order cost $850, and lead time 120 days.

The holding costs for all of the suppliers is the same.Your projected demand for next year in dollars is $400,000. Your order quantity is $40,000 per order, your average daily demand is $1,600 and youre open 250 day as year. You want splitting the orders between the two best suppliers, so you are not totally dependent on one supplier. What two locations are best?

Procurement cost/unit, P	$7.65
Management oversight cost/unit, O	$0.55
Unit transportation cost Ct	$0.60
Order cost/order, Co	$625.00
Holding cost per unit, Ch	$1.35
Lead time, L	60

Vietnam and China

Vietnam and Mexico

Singapore and China

Vietnam Singapore