You've been hired as the new supply chain manager at the district warehouse. Reports have been generated about each of our products for your first day on the job and the summary table can be found below:

Metric Cat Hoodies Wet Cat Food Kitten Mittens Cat Doors Cat Hammocks Selling Price $35 $6 $8 $25 $68 Cost to Produce $12 $2.75 $4.50 $12 $35 Salvage Value $2 $0.5 $2 $5 $25 Holding Cost (as % of unit cost) 10% 25% 8% 12% 12% Average Daily Demand 250 177 82 43 29 Daily standard deviation of Demand 54 65 28 19 8 Unit Specific Costs to Order from Supplier 200 250 107 324 189 Before you were hired, the company had started to investigate a potential new supplier for all of these products. The relevant information is in the table below:

Metric Old Supplier Potential New Supplier Standard Ordering Cost 700 490 Avg Lead Time 7.5 days 11 days Std Dev of Lead Time 2 day 4.9 days If required, assume 5 working days/week (the shop is closed Saturdays and Sundays) and 48 work weeks/year.

1.) The EOQ quantity for each product if everything is ordered separately.

2.) The Total Annual Costs for the individual EOQ model.

3.) The EOQ quantity for each product if everything is ordered jointly.

4.) The Total Annual Costs for the Joint/Combined EOQ model

5.) Assuming a continuous review model, which supplier should you go with?

6.) Justify which supplier you should go with. Use both numerical and logical analysis to support your answer.

Answer rating: 100% (QA)

To answer the questions regarding the EOQ quantity total annual costs and supplier selection we will utilize the Economic Order Quantity EOQ model and ... View the full answer