Answer Happy

A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Oversight Transport Order Cost Cost to Store Order Lead Certified Order Price per Cost Cost per (Co) One Unit Time in Supplier Size (Q) Unit (P) per Unit (0) Unit (Ct) One Year (Ch) Days (L) New Albany Mfg. 59,000 $9.47 $0.00 $0.23 $155 $3.35 45 LaPlaya Mfg. 118,000 $8.37 $0.43 $0.67 $220 $3.00 108 a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 944,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 59,000 units 118,000 units Order quantity: Total procurement cost: $ $ 8939680 7901280 Total management oversight cost: $ $ 0 405920 Total annual transportation cost: $ 217120 $ Annual order cost: $ $ Annual holding cost: $ $ Average annual pipeline invenory cost: $ $ Total supply chain costs: $ b. What supplier and order quantity do you recommend based on total costs? Based on total cost, the company should choose New Albany Mfg. with corresponding order quantity of brake pads.