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

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 quantity (Q) of 20,000 bottles with annual requirements ( of 40,000 units. Wanda's factory operates 250 days a year. The following table shows each supplier's price, estimated annual freight costs, and current lead times; management has added estimates for holding costs and administrative oversigh costs for each supplier. i Freight Price/Unit Annual Holding Lead Time Annual Administrative Supplier Costs (p) Cost/Unit (H) (L) (days) Costs Dover Plastics $3,500 $5.15 $1.03 14 $5,000 Evan & Sons $4,000 $5.05 $1.01 19 $4,000 Farley, Inc. $3,000 $5.10 $1.02 17 $6,000 a. Which of the three suppliers will provide the lowest annual cost to Wanda Lux? Using is the lowest cost alternative, with annual total costs to Wanda Lux of $ (Enter your response rounded to the nearest whole number.) Evan Farley Dover

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