Question: Problem 2: Supplier Selection A bike assembler is reviewing its purchase options for body frames. Annual requirements are for 100,000 frames, and the company operates

Problem 2: Supplier Selection A bike assembler is

Problem 2: Supplier Selection A bike assembler is reviewing its purchase options for body frames. Annual requirements are for 100,000 frames, and the company operates 200 days a year. The following data are available for the two suppliers. Shipping quantity per Supplier shipment . 7,500 B 2,500 Annual Shipping Costs ($) 35000.00 60000.00 Price per frame ($) 38.00 40.00 Inventory Holding Costs ($) unit/year () 7.80 7.80 Leadtime Admin (days) Costs ($) 7 20000.00 3 45000.00 a. What is the annual inventory holding costs for each supplier? 1 b. What is the annual pipeline inventory costs for each supplier? c. What is the total annual inventory costs for each supplier? d. What is the savings in annual material costs available when comparing the two suppliers? e. What is the savings in annual shipping cost available when comparing the two suppliers

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