Activity: Total Supply Chain Cost

A global sourcing manager for Delta Automotive wants to compute the total supply chain costs for automobile parts purchased from three different global

suppliers. The data related to the supply chain costs associated with three possible suppliers has been collected in the Microsoft Excel Online file below.

The annual demand $D$ is $350,000$ units. The supplier prices and transportation costs are predicated on an order quantity of $35,000$ units $($note that this is not

the EOQ$).$ We may assume that parts are transported from Mexico to the United States by truck, and by a combination of ships and trucks from Japan and

China, and $250$ working days per year.

Questions

What are the total supply chain costs for each of the suppliers? Round your answers to the nearest dollar.

Mexican Supplier

Japanese Supplier

Chinese Supplier

Which supplier provides the lowest total supply chain cost?