Use the information below to calculate the total cost of ownership for both suppliers. Which...
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Use the information below to calculate the total cost of ownership for both suppliers. Which should you select based on TCO? Answer 1 or 2. Order lot size Annual demand 2,593 units 393,716 units 68 pounds $169 per order Weight Order processing cost Inventory carrying rate 0.06 per year Supplier 1 $273 $137 Supplier 2 $265 $149 $97 $52 $12,775 Unit Price Q 2,180 units / order Tooling Cost Distance Supplier defect rate (% of engine cost Truckload (TL 2 60,088 lbs.): Less-than-truckload (LTL): Note: per ton-mile - 2.000 pounds per mile $19,165 112 miles 92 miles 0.04 $1.17 per ton-mile $1.99 per ton-mile Use the information below to calculate the total cost of ownership for both suppliers. Which should you select based on TCO? Answer 1 or 2. Order lot size Annual demand 2,593 units 393,716 units 68 pounds $169 per order Weight Order processing cost Inventory carrying rate 0.06 per year Supplier 1 $273 $137 Supplier 2 $265 $149 $97 $52 $12,775 Unit Price Q 2,180 units / order Tooling Cost Distance Supplier defect rate (% of engine cost Truckload (TL 2 60,088 lbs.): Less-than-truckload (LTL): Note: per ton-mile - 2.000 pounds per mile $19,165 112 miles 92 miles 0.04 $1.17 per ton-mile $1.99 per ton-mile
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