Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a...
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Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon to be introduced to the market. The annual requirements (D) are 40,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the following table. Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time Supplier 10,000 20,000 (d) Cost/Unit (H) (L) (days) Annual Administrative Cost Abbott $8,000 $5,000 $31 $6.20 4 $8,000 Baker Carpenter $11,000 $9,000 $29 $5.80 6 $11,000 $12,000 $9,000 $30 $6.00 5 $12,000 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? Using and a shipping quantity of units is the lowest cost alternative, with annual total costs to Horizon Cellular of $ (Enter your response as an integer.) Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon to be introduced to the market. The annual requirements (D) are 40,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the following table. Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time Supplier 10,000 20,000 (d) Cost/Unit (H) (L) (days) Annual Administrative Cost Abbott $8,000 $5,000 $31 $6.20 4 $8,000 Baker Carpenter $11,000 $9,000 $29 $5.80 6 $11,000 $12,000 $9,000 $30 $6.00 5 $12,000 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? Using and a shipping quantity of units is the lowest cost alternative, with annual total costs to Horizon Cellular of $ (Enter your response as an integer.)
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