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Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Sadly, space does not permit an exhaustive list but once the test is over, check out their website. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars. Unit costs Supplier A B C D Freight Costs Supplier A B C D Other Costs Supplier A B C D Price/Unit 123 125 126 100 15,000 units 380,000 615,000 285,000 380,000 Lead Time 30 15 7 90 Carrying Cost 22 19 18 40 25,000 units 260,000 547,000 240,000 260,000 Admin Costs 250,000 275,000 225,000 2,500,000 50,000 units 237,000 470,000 200,000 237,000 (LO2DM4) Use Table 1 to answer the
question. As shipping volume increases from 15,000 to 25,000 to 50,000, which supplier experiences the smallest percentage increase in inventory cost? O Supplier A O Supplier B O Supplier C O Supplier D
(LO2DM4) Use Table 1 to answer the
question. Kalil has a brother-in-law that works for Supplier B and as she will soon be an aunt for the first time, she'd like to choose a shipping volume that awards Supplier B with the contract with Alison Accessories. What shipping volume should she choose? O 25,000 units O Supplier B is never the best alternative. O 50,000 units O 15,000 units