Your purchasing manager has requested your assistance to evaluate two potential suppliers.
The specification length for the widget is 80 ± 10mm. The current supplier charges 2.85/unit. The the current demand is 1,000 units with an expected increase of 20% by next year.

Current				Alternate A ($2.15/unit)				Alternate B ($2.95/unit)
72	86	78		86	66	86		80	86	82
70	84	76		84	66	84		78	84	80
70	84	76		84	66	80		80	84	80
72	86	76		86	72	78		80	86	86
72	86	76		86	70	80		76	74	84
76	80	74		72	70	80		78	80	80
78	78	72		70	72	80		78	74	78
76	80	74		70	72	74		78	74	84
78	80	74		84	86	74		70	74	80
78	80	74		86	74	74		76	78	76

What would your recommendation be? Justify your answer.

Answer rating: 100% (QA)

ANSWER It is calculated by multiplying the potential number of buyers and the average quantity of ea... View the full answer