Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

Jumpin Fish Computer Co . outsources the production of motherboards for its co Due to differences in the product failure rates in the two companies

/in /by

Jumpin Fish Computer Co . outsources the
production of motherboards for its co
Due to differences in
the product failure rates in the two companies , 5% of
motherboards purchased from Alpha will be inspected and 25% of motherboards purcha
masters It is currently deciding which of two suppliers to use Alpha or Beta Due to diferences in the prod
sed from Beta will be inspected . The following data refers to costs ass
( Click the icon to view the data )
Requirements
@ Data Table
1 . What is the relevant cost of purchasing from Alpha and Beta ?
2 . What factors other than cost should Jumpin Fish consider ?
Alpha
Requirement 1 . What is the relevant cost of purchasing from Alpha and Beta ?
Number of orders per year
Calculate the relevant cost of purchasing from Alpha and Beta
otherboards
Annual motherboards demanded
17.000
17.000
Alpha
Price per motherboard
8 95
5 91
Purchase costs
Ordering cost per order
8 91
Ordering costs
Inspection cost per unit
Inspection costs
verage inventory level
200 units
200 units
equired annual return on investment
Expected number of stockouts
Stockout costs
Stockout cost ( cost of rush order ) per stockout
Return costs
Units returned by customers for replacing motherboards
ost of replacing each motherboard
8 21
5 21

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"