What would you recommend to your purchasing team

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Reference no: EM13226129

Your company produces a product that weighs 750 grams.

The weight specification for the packaging container is < 50 grams, hence, the total packaged product weight is < 800 grams.

Two packaging suppliers have the following proposal for you:

Supplier A

Average packaging container weight = 30 grams

Standard deviation of packaging container weight = 2 grams

Cost /container = $3.00

Supplier B

Average packaging container weight = 34 grams

Standard deviation of packaging container weight = 3.5 grams

cost / container = $2.00

What would you recommend to your purchasing team?

Provide analysis and rationale for your decision.

Reference no: EM13226129

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