Question: 4. Wanda Lux must select a supplier for a plastic bottle and proprietary dispenser for its new hair shampoo. Three suppliers have placed bids; at

4. Wanda Lux must select a supplier for a plastic

4. Wanda Lux must select a supplier for a plastic bottle and proprietary dispenser for its new hair shampoo. Three suppliers have placed bids; at Wanda's request, all bids are for a shipping quantity (Q) of 20,000 bottles with annual requirements (D) of 40,000 units. Wanda's factory operates 250 days a year. The following table shows each supplier's price, estimated annual freight costs, and current lead times; management has added estimates for holding costs and administrative oversight costs for each supplier. Freight Costs $4,500 Supplier Dover Plastics Evan & Sons Farley, Inc. Price/Unit (p) $5.15 $5.10 Annual Holding Cost/Unit (H) $1.03 $1.02 $1.01 Lead Time (L) (days) 19 15 20 Annual Administrative Costs $4,000 $5,000 $3,000 $4,000 $5.05 $3,000 a. Which of the three suppliers will provide the lowest annual cost to Wanda Lux? Using (1) is the lowest cost alternative, with annual total costs to Wanda Lux of $ (Enter your response rounded to the nearest whole number.) Beyond costs, however, Wanda has three other criteria considered important in the selection of a supplier. The following table shows all the criteria, their weights, and the scores for all of them except total costs, where a score of 1.0 indicates "poor" and 10 indicates "superior." Because all three suppliers have done business with Wanda Lux before, management will assign a score of "10" to the supplier with the lowest total annual cost, a score of "8.5" for the next lowest cost, and a score of "7.0" for the worst cost of the three. Rating Evan Farley Criteria 1. Total Cost 2. Consistent Quality 3. On-Time Delivery 4. Environment Weight 30 30 20 20 Dover ? 7 8 9 ? 9 9 9 8 7 7 b. Given Wanda's criteria and weighting system, which supplier should Wanda award the contract to? Wanda should award the contract to (2) whose total weighted score is (Enter your response as an integer.) 1: If you are copy/pasting this data table into POM for Windows... There is no module in POM for Windows to support this data. Please try pasting into Excel or other spreadsheet applications. (1) O Farley O Dover O Evan (2) O Dover O Farley O Evan

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