Question: Adele Enterprises has decided to drop the International Supplier from consideration. Further, Adelio has decided to order boxes in lots of 10,000 in order to

Adele Enterprises has decided to drop the
Adele Enterprises has decided to drop the
Adele Enterprises has decided to drop the International Supplier from consideration. Further, Adelio has decided to order boxes in lots of 10,000 in order to optimize the use of available storage space at its distribution facility. In order to more completely consider the cost'volume tradeoffs associated with selecting the Local or National Supplier, management has collected the data shown in Table 1. Adele services its customers 250 days per year. Click the icon to view Table 1 a. On purely a total cost basis, which supplier should be selected if there is low demand for Adollo's now service which supplier should be selected under moderato demand assumptions under high demand? Fill in the table below. (Enter your responses rounded to the nearest dollar) Selected supplier Total annual cost at this choice Demand Low a Demand Level Demand Price / Freight Cost/ unit 1,000 Carrying Cost/ unit Lead Time Administrative Costs in days Local Supplier Low Moderate High Low Moderate High 60,000 120,000 280,000 60,000 120,000 280,000 $1.55 $1.55 $1.55 $1.70 $1.55 $1.45 $30.00 $30.00 $30.00 $120.00 $120.00 $120.00 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 2 2 2 7 $20,000.00 $20,000.00 $20,000.00 $16,000.00 $16,000.00 $16,000.00 National Supplier 7 7

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