Question: Trelex AA is actively developing a weight loss food supplement named Proctologist, with promising results. With plans to launch in Mexico, where 4 3 %

Trelex AA is actively developing a weight loss food supplement named Proctologist, with promising results. With plans to launch in Mexico, where 43% of the population grapples with uncontrolled obesity, the company faces a packaging challenge due to transportation constraints. Identifying 5 suppliers with varying pricing options, Table 1 illustrates the price breakdown. The U.S. demand is 250 units weekly, and Mexican demand is anticipated to be 12.5% lower in the first year. Trelex AA's ordering cost is $275, with an estimated 32% annual holding cost. The base unit price is $6.45, and exceeding storage capacity (875) incurs 50% of the purchasing price paid. Considering total costs and constraints presented, determine the best supplier. To make a judicious decision, we need further information on the inventory` policy (Number of orders, average inventory and days to be supplied for the best option. The options for each supplier is presented in Table 1.
(Please show calculations for at least 1 option so that I can make sure I am on the right track.)
 Trelex AA is actively developing a weight loss food supplement named

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!