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Assignment:
A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads. Data for each is listed below. Audubon Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 340 days per year. Tariff Cost per Unit $0.00 $0.46
a. What is the total annual part and logistics cost for each supplier if annual demand is 1,000,000 brake pads?
b. What supplier and order quantity do you recommend based on total costs?
c. List other criteria you might use to make the final supplier decision.
d. What will you tell the supplier that is not awarded the brake pad order?
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