Question: please answer asap Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company

please answer asap  please answer asap Your company assembles five different models of a
motor scooter that is sold in specialty stores in the United States.
The company uses the same engine for all five models. You have

Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,250 units Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected Note: Assume that half of the lot size is in inventory, on average (1,250/2=625 units). Two qualified suppliers have submitted the following quotations: Your assistant has obtained the following freight rates from your carrier: Note: Per ton-mile =2,000 pound per mile a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.) a-2. Which supplier would you select? Supplier 1 Supplier 2 b-1. If you could move the lot size up to ship in truckload quantities, calculate the total cost for each supplier. (Do not round intermediate calculations. Round "Required lot size for truckload" and final answers to the nearest whole number.) HINT: Use (full) truckload cost rates and the lowest (feasible) unit cost for all calculations. For example, if there are 83 orders per year. don't split the 8.3 orders into 8 full truckloads and 0.3 less-than-truckloads - use the full truckload rate for all 8.3 orders. For annual purchase cost, don't use two different unit costs for the 8 complete orders and the 0.3 partial orders - use the lowest (feasible) unit cost for all 8.3 purchase orders based on the lot size needed for a full truckioad b-2. Would your supplier selection change? Yes No

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!