Question: PLEASE HELP, I THOUGHT I HAD THIS FIGURED OUT AND I DO NOT. DUE SOON Adelie Enterprises has decided to drop the International Supplier from

PLEASE HELP, I THOUGHT I HAD THIS FIGURED OUT ANDPLEASE HELP, I THOUGHT I HAD THIS FIGURED OUT AND

PLEASE HELP, I THOUGHT I HAD THIS FIGURED OUT AND I DO NOT. DUE SOON

Adelie Enterprises has decided to drop the International Supplier from consideration. Further, Adelie has decided to order boxes in lots of 5,000 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. Adelie 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 Adelie's new service, which supplier should be selected under moderate demand assumptions; under high demand? Fill in the table below. (Enter your responses rounded to the nearest dollar.) Demand Low Selected supplier local Total annual cost at this choice $ 121,325 Moderate national $ i Demand Level Demand Price / Freight Cost / unit 1,000 Carrying Cost/ unit Administrative Costs Lead Time in days 1 1 1 Low cal Supplier Moderate High Low onal Supplier Moderate High 75,000 150,000 300,000 75,000 150,000 300,000 $1.35 $1.35 $1.35 $1.60 $1.35 $1.20 $25.00 $25.00 $25.00 $110.00 $110.00 $110.00 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $17,500.00 $17,500.00 $17,500.00 $14,000.00 $14,000.00 $14,000.00 7 7 7

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