Question: Can you please solve this problem fast Omaha's Accessories is an international fashion firm with outlets in 100 countries. Mrs. K, the COO is conducting

Can you please solve this problem fast

Omaha's Accessories is an international fashion firm with outlets in 100 countries. Mrs. K, the COO is conducting her analysis of her four candidates for the firm's supplier. Regardless of supplier, Omaha's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Mrs. K has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.

Unit costs

Supplier Price/Unit Carrying Cost
A 123 22
B 125 19
C 126 18
D 100 40

Freight Costs

Supplier 15,000 units 25,000 units 50,000 units
A 380,000 260,000 237,000
B 615,000 547,000 470,000
C 285,000 240,000 200,000
D 380,000 260,000 237,000

Other Costs

Supplier Lead Time Admin Costs
A 30 250,000
B 15 275,000
C 7 225,000
D 90 2,500,000

For a shipping quantity of Q = 15,000 units, what is the total annual cost if supplier D is chosen? Round d bar to the nearest whole number.

Group of choices:

25,258,700

35,258,700

32,269,600

45,269,600

Don't use chatgpt otherwise I'll down vote so please provide genuine answer.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!