Question: Wanda Lux must select a supplier for a plastic bottle and proprietary dispenser for its new hair shampoo. Three suppliers have placed bids; at Wanda's
Wanda Lux must select a supplier for a plastic bottle and proprietary dispenser for its new hair shampoo. Three suppliers have placed bids; at Wanda's request, all bids are for a shipping quantityQ of
comma
bottles with annual requirementsD of
comma
units. Wanda's factory operates days a year. The following table
LOADING...
Supplier
Freight Costs
PriceUnit p
Annual Holding CostUnit H
Lead TimeLdays
Annual Administrative Costs
Dover Plastics
$ comma
$
$
$ comma
Evan & Sons
$ comma
$
$
$ comma
Farley Inc.
$ comma
$
$
$ comma
Part
a Which of the three suppliers will provide the lowest annual cost to Wanda Lux?
Using
Farley
Dover
Evan
is the lowest cost alternative, with annual total costs to Wanda Lux of
$enter your response here.
Enter your response rounded to the nearest whole number.
Part
Beyond costs, however, Wanda has three other criteria considered important in the selection of a supplier. The following table shows all the criteria, their weights, and the scores for all of them except total costs, where a score of indicates "poor" and indicates "superior." Because all three suppliers have done business with Wanda Lux before, management will assign a score of to the supplier with the lowest total annual cost a score of for the next lowest cost and a score of for the worst cost of the three.
Rating
Criteria
Weight
Dover
Evan
Farley
Total Cost
Consistent Quality
OnTime Delivery
Environment
Part
b Given Wanda's criteria and weighting system, which supplier should Wanda award the contract to
Wanda should award the contract to
Farley
Dover
Evan
whose total weighted score is
enter your response here.
Enter your response as an integer.shows each supplier's price, estimated annual freight costs, and current lead times; management has added estimates for holding costs and administrative oversight costs for each supplier.
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