Determine the annual inventory costs if the lower inventory

Assignment Help Operation Management

Reference no: EM13394683

The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry. Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation. The supplier will be selected based on total annual cost to supply Burdell's needs. Burdell's annual requirements are for 25,000 tires, and the company operates 250 days a year. The following data are available for two suppliers being considered.

SUPPLIER

SHIPPING QUANTITY PER SHIPMENT

ANNUAL

SHIPPING COSTS

PRICE / TIRE (p)

INVENTORY HOLDING COSTS (H)

LEAD TIME (DAYS)

ADMIN. COSTS

LEXINGTON TIRE

1,500

$18,000

$30

$6.00

$15,000

IRMO

AUTO

1,200

$25,000

$29

$6.80

$18,000

What are the annual inventory costs if the lower inventory cost supplier is selected?

A) Less than or equal to $7,000

B) More than $7,000 but less than or equal to $7,500

C) More than $7,500 but less than or equal to $8,000

D) More than $8,000

Reference no: EM13394683

Questions Cloud

Describe the magnetic field in terms of magnitude and : describe the magnetic field in terms of magnitude and direction produced inside a solenoid when it is driven bya a

You have worked at this organization for over 10 years and : you have worked at this organization for over 10 years and feel totally unappreciated. you have not received a

Describe the symbols used for redirection operators discuss : 1. what are the symbols used for the redirection operators? explain input and output redirection.2. what is the

What is your ldquonumberrdquo what might cause your number : what is your ldquonumberrdquo see reading for techniques and tools? what might cause your number to be higher? what

Determine the annual inventory costs if the lower inventory : the burdell wheel and tire company assembles tires to wheel rims for use on cars during manufacture of vehicles by the

Imagine that someone has offered you 1000 to buy your : imagine that you own a small local clothing store along the jersey shore boardwalk and decide that you want to engage

You were recently hired as management director of the new i : you were recently hired as management director of the new i can business incorporated icbi. you have been asked to

To maximize profit must firm lower its price increase its : a monopolist has determined that marginal revenue is 2.00 and average cost is 1.75. it has also determined that the

Explain discrete and continuous random variable what is a : explain discrete and continuous random variable? what is a probability distribution for a discrete random variable?

User Account

All Pages