
Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. 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
Freight Costs
Other Costs
-Use Table 14.1 to answer the question. Kalil believes that Alison's would benefit most from smaller shipments of accessories from their chosen supplier. Which supplier would result in the lowest total cost using this criterion?
A) Supplier A
B) Supplier B
C) Supplier C
D) Supplier D
Correct Answer:
Verified
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