Nortutt manufactures highend racirg bkes and suppliers is as follows: looking fo
ID: 332505 • Letter: N
Question
Nortutt manufactures highend racirg bkes and suppliers is as follows: looking for a source of goar sproket sets Notait wold need 1550 sets a month. Spplar A is a domestcfrm, and Sppiers B and C ao located overseas. Coinfomaton frte Supplier A-Price of $100 per set, plus packing cost of $2.00 per set. Total inland freight costs for all 1,550 units would be $800 per month Supplier B-Price of te6 per se, plus packing col d S350 persee intemaloral tansportation costs 1d total $3.500 per mort, whie total irard teghtcost would be sa00 per mort. Supplier C Price of$93 per set, plus packing cost of $3.00 per set. Intenational transportation costs would total $6,000 per month, while total inland freight cosls would be $1,000 per month The total landed cost per unit for Supplier A is Enter your response rounded to two decimal places) The total landed cost per month for Supplier A is Enter your response as a whole number) The total landed cost per unit for Suppler B is SEnter your response rounded to hwo decimal plnces The total landed cost per month for Supplier&is; Ener your esponse as a whole number) The total landed cost per unit for Supplier Cis (Enter your response rounled to two decimal place The total landed cosat per month for Suppler C iss ner your esponse as whole number Suppleris the least expensive Supplier is the most expensive b. Suppose that international and inland treight costs ane fxed for volumes up to 4,000 units a month suppler | ?I has ts weat lar cost demand was at in hat The landed cost of Suppleris most sensitive to volume changesExplanation / Answer
Supplier A :-
Price=$100
Packing=$2
Inland Freight cost per unit=800/1550=$0.52 per unit
Total per unit cost= $100+$2+$0.52=$102.52
Total cost per month=$102.52*1550=$158906
Supplier B:-
Price=$96
Packing=$3.5
Inland Freight cost per unit=800/1550=$0.52 per unit
International transportation cost=$3500/1550=$2.26
Total per unit cost= $96+$3.5+$0.52+$2.26=$102.28
Total cost per month=$102.28*1550=$158534
Supplier C:-
Price=$93
Packing=$3
Inland Freight cost per unit=1000/1550=$0.65 per unit
International transportation cost=$5000/1550=$3.23
Total per unit cost= $93+$3+$0.65+$3.23=$99.88
Total cost per month=$99.88*1550=$154814
Answer:- Supplier C is least expensive as total cost is $154814
Answer:- Supplier A is most expensive with a total cost $158906
Answer:- When the demand is half:-
Supplier A :-
Price=$100
Packing=$2
Inland Freight cost per unit=800/775=$1.03 per unit
Total per unit cost= $100+$2+$1.03=$103.03
Total cost per month=$103.03*775=$79848.25
Supplier B:-
Price=$96
Packing=$3.5
Inland Freight cost per unit=800/775=$1.03 per unit
International transportation cost=$3500/775=$4.52
Total per unit cost= $96+$3.5+$1.03+$4.52=$105.25
Total cost per month=$105.05*775=$81413.75
Supplier C:-
Price=$93
Packing=$3
Inland Freight cost per unit=1000/775=$1.29 per unit
International transportation cost=$5000/775=$6.45
Total per unit cost= $93+$3+$1.29+$6.45=$103.74
Total cost per month=$103.74*775=$80398.5
Supplier A will be having the lowest landed cost
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