Wascally Wabbit Inc., (WWI) has a manufacturing plant in the city of Benguluru, India, pro- ducing...

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Wascally Wabbit Inc., (WWI) has a manufacturing plant in the city of Benguluru, India, pro- ducing a special electronic module for automobiles. The company recently obtained an order for 2500 of this module. Each module requires five types of components - A, B, C, D and E - in different amounts. For example, this module uses 20 units of component A. The Local Content Rule for Benguluru states that 60% of the value of all purchases made by WWI must be produced from local suppliers. WWI wishes to minimize purchasing costs while satisfying the local content rule. The purchasing department found the cheapest local supplier in Benguluru and cheapest U.S. supplier. Assume that the quality level between competing suppliers is similar and price is the only meaningful difference. The table below shows provides the purchasing cost for each component, along with the amount of each component used in each module. Determine the least-cost purchasing plan. (Note: Please read the instructions one the first page of this test on setting up and solving this problem). Component A B с D E Cost Per Unit Benguluru Supplier $0.50 4.00 6.50 105.00 54.00 Cost per Unit # of Components Used U.S. Supplier in Each Module $0.35 25 3.00 3 5.85 4 97.00 63.00 1 Wascally Wabbit Inc., (WWI) has a manufacturing plant in the city of Benguluru, India, pro- ducing a special electronic module for automobiles. The company recently obtained an order for 2500 of this module. Each module requires five types of components - A, B, C, D and E - in different amounts. For example, this module uses 20 units of component A. The Local Content Rule for Benguluru states that 60% of the value of all purchases made by WWI must be produced from local suppliers. WWI wishes to minimize purchasing costs while satisfying the local content rule. The purchasing department found the cheapest local supplier in Benguluru and cheapest U.S. supplier. Assume that the quality level between competing suppliers is similar and price is the only meaningful difference. The table below shows provides the purchasing cost for each component, along with the amount of each component used in each module. Determine the least-cost purchasing plan. (Note: Please read the instructions one the first page of this test on setting up and solving this problem). Component A B с D E Cost Per Unit Benguluru Supplier $0.50 4.00 6.50 105.00 54.00 Cost per Unit # of Components Used U.S. Supplier in Each Module $0.35 25 3.00 3 5.85 4 97.00 63.00 1

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To determine the leastcost purchasing plan while satisfying the local content rule for WWI we need to compare the costs from the local supplier in Ben... View the full answer