A manufacturing company produces a product that requires multiple components to be assembled. The company has...

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A manufacturing company produces a product that requires multiple components to be assembled. The company has two suppliers for each component: Supplier A and Supplier B. Each supplier has a different lead time and cost for producing the components. Supplier A has a lead time of 5 days and charges $10 per component. Supplier B has a lead time of 3 days and charges $12 per component. The company's daily demand for the product is 100 units. The company wants to minimize its costs while ensuring that it meets its daily demand. However, there is a risk associated with relying solely on one supplier, as any disruption in the supply chain could lead to delays and production downtime. How can the company determine the optimal ordering strategy for the components from the two suppliers to minimize costs and mitigate supply chain risks? Consider factors such as lead time, cost, demand, and the need for backup suppliers. Provide a detailed explanation of your approach and the factors considered in making the decision. A manufacturing company produces a product that requires multiple components to be assembled. The company has two suppliers for each component: Supplier A and Supplier B. Each supplier has a different lead time and cost for producing the components. Supplier A has a lead time of 5 days and charges $10 per component. Supplier B has a lead time of 3 days and charges $12 per component. The company's daily demand for the product is 100 units. The company wants to minimize its costs while ensuring that it meets its daily demand. However, there is a risk associated with relying solely on one supplier, as any disruption in the supply chain could lead to delays and production downtime. How can the company determine the optimal ordering strategy for the components from the two suppliers to minimize costs and mitigate supply chain risks? Consider factors such as lead time, cost, demand, and the need for backup suppliers. Provide a detailed explanation of your approach and the factors considered in making the decision.

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To determine the optimal ordering strategy for the components from the two suppliers Supplier A and Supplier B the manufacturing company needs to consider both cost optimization and risk mitigation du... View the full answer