Amart Ltd needs to purchase glass panes to make dining tables. Last year Amart has two suppliers,
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Question:
Amart Ltd needs to purchase glass panes to make dining tables. Last year Amart has two suppliers, Sunrise and Texco, with the following supplier related information:
Supplier related activities | Cost per unit of activity driver | Number of activities for Sunrise | Number of activities for Texco |
---|---|---|---|
Returning poor quality glass panes | $105 per pane | 20 panes | 15 panes |
Processing purchase orders | $20 per order | 17 orders | 43 orders |
Receiving and inspecting deliveries | $45 per delivery | 29 deliveries | 17 deliveries |
Supplier audit | $800 per audit | 5 audits | 3 audits |
Rework due to poor quality glass | $70 per table | 50 tables | 15 tables |
Purchase price per glass pane | $120 | $130 | |
Number of glass panes purchased | 412 | 780 |
Calculate the supplier performance index of Sunrise (round your answer to 2 decimal places).
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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