The Green Machine Manufacturing Company is also trying to decide which of two su
ID: 386090 • Letter: T
Question
The Green Machine Manufacturing Company is also trying to decide which of two suppliers to purchase engines from. Green Machine has agreed to cover the tooling cost for the supplier selected. The relevant information is provided below. Carry all calculations out to two decimal places Order lot size 700 units Annual demand 35,000 units Engine weight Order processing cost Inventory carrying rate 10 pound:s $100/ order 1% per year Supplier 1 $315.00 306.00 Supplier 2 Unit Price 1 to 999 units/order $320.00 Unit Price 1000 to 2999 units order $309.00 Unit Price 3000units/ order $300.00 $305.00 Tooling Cost $13,500 $10,750 Distance 210 miles 200 miles supplier defect rate (% of engine cost) 1.5% 0.5% Truckload (TL z 40,000 lbs.): $1.05 per ton-mile Less-than-truckload (LTL): $1.75 per ton-mile Note: per ton-mile- 2,000 pounds per mileExplanation / Answer
Que-28
None of the above (as Bull whip is about stuck of inventory items or flow of information. Trade deals, lead times, price and policies can always make a Bull whip happen)
Que-29
Purchase Order (Still the seller can reject this Purchase order with interest of selling to the Purchaser at his own wish, depending if seller has interest/ capability to fulfil the order)
Que-30
Except 3rd option, all are true (as Decentralized purchasing never uses a common base, but use multiple bases to maintain supply)
Que-31
Supplier A (as priority is critical need over here and well know supplier is more customer responsive)
Que-32
More Flexible Supply Chains (responsive and efficient supply chains with short lead times and right delivery is the key)
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