Use the date in Table 14.1. Analyze costs and make recommendations regarding the shipping options and suppliers. Which combination of shipping amount and supplier yields the lowest total cost?
What will be an ideal response?
Supplier C shipping 50,000 units at a time is the lowest total cost situation for Alison Accessories at $32,518,182 annually.
All cost and supplier combinations are contained in the table. Bolded entries are the low cost options for each shipping quantity.
Supplier 15,000 25,000 50,000
A 32,295,000 32,285,000 32,537,000
B 32,606,364 32,633,364 32,793,864
C 32,288,182 32,333,182 32,518,182
D 32,270,909 32,350,909 32,827,909
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