The burdell wheel and tire company assemble tires to wheel, Ask an Expert

Management Studies

The Burdell Wheel and Tire Company assemble tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry. Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation. The supplier will be selected based on total annual cost to supply Burdell’s needs. Burdell’s annual requirements are for 25,000 tires, and the company operates 250 days a year. The following data are available for two suppliers being considered.

Supplier

Shipping Quantity Annual Shipping Costs Price /unit Annual Holding Cost/unit Lead Time (days) Annual Administrative Cost

Lexington Tire 2,000 $18,000 $41 $8.20 7 $14,000

Irmo Auto 1,500 $22,000 $40 $8.00 5 $18,000

Using the Total Cost Analysis for Supplier Selection, which supplier should Burdell choose? Provide details to justify your answer.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91641977

Have any Question?Write your Review or question?

Related Questions in Operation Management

A real estate investor has the opportunity to purchase land

A real estate investor has the opportunity to purchase land currently zoned residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to leas ...

As your companyrsquos hr professional you have completed a

As your company’s HR professional, you have completed a review of employees’ performance appraisal feedback. You have discovered that there are differences in the type of feedback that men and women receive. Positive fee ...

A bicycle manufacturer purchases bicycle seats from an

A bicycle manufacturer purchases bicycle seats from an outside supplier for $20 each. The manufacturer’s inventory of seats turns over 1.2 times per month, and the manufacturer has an annual inventory holding cost of 32% ...

1 localization strategy is focused on increasing

1. Localization strategy is focused on increasing profitability by customizing the company's goods or services so that the goods provide a favorable match to tastes and preference in different national markets. American ...

In 1919 pasha patel owned several acres of land in the

In 1919, Pasha Patel owned several acres of land in the Upper Peninsula of Michigan. Half a pond was located on Patel's land. The other half of the pond was located on land owned by Brooke Brookhaven. For a small conside ...

Describe in detail what you believe to be the ideal

Describe in detail what you believe to be the ideal “Personality Traits” of a leader -the attitudes, beliefs and values you admire most in leaders. Include what you feel are the most important values, ethics, personality ...

Topic management of conflict in an organization and

Topic: Management of conflict in an organization, and strategies to avoid it. Presentation should not contain more than 40 slides. Justify the presentation with appropriate references. Follow APA style for referencing.

Mr and mrs yeung are shareholders and directors of japan

Mr and Mrs Yeung are shareholders and directors of Japan Travel Limited, a company incorporated in Hong Kong. They are organizing sightseeing tours to Japan. The company adopts the Model Articles. Required: a. Three year ...

1 what is the type of business level strategy pursued by

1. What is the type of business level strategy pursued by Polaris & Victory. Explain using the dimensions of competitive scope and competitive advantage 2. What is the corporate level s ...

What are the negotiating customs motivating techniques

What are the negotiating customs, motivating techniques, leadership styles (popular or most used leadership styles, attitudes towards leadership, how leaders are treated/viewed/respected, how hierachial relationships are ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert