Vitella Company manufactures a product sold to retailers. It is considering suppliers for its process. The supplier quality involves four activity areas:
$$\begin{array} { l l }
\text { Activit Area } & \text { Cast Driver and Rate } \
\text { Order cost } & \$ 125 \text { per purchase order } \
\text { Defective units } & \$ 200 \text { per urit internal failure costs } \
\text { Delivery trips } & \$ 5 \text { per delivery kilametre } \
\text { Caryying cost } & \$ 1 \text { per order }
\end{array}$$ The following supplier information is given:
$$\begin{array} { l r r r r }
&\text {W4}&\text {X3}&\text {Y2}&\text {Z1}\
\text { Materials units meeded } & 100,000 & 100,000 & 100,000 & 100,000 \
\text { Actual purchase price } & \$ 4.98 & 55 & 54.99 & \$ 5.01 \
\text { Number of purchase orders } & 10 & 20 & 30 & 18 \
\text { Number of defects } & 3 & 6 & 12 & 0 \
\text { Nurgher of deliveries } & 25 & 20 & 30 & 18
\end{array}$$
-Refer to the figure.Which supplier is least costly?

Question

Vitella Company manufactures a product sold to retailers. It is considering suppliers for its process. The supplier quality involves four activity areas:
$$\begin{array} { l l } 
\text { Activit Area } & \text { Cast Driver and Rate } \
\text { Order cost } & \$ 125 \text { per purchase order } \
\text { Defective units } & \$ 200 \text { per urit internal failure costs } \
\text { Delivery trips } & \$ 5 \text { per delivery kilametre } \
\text { Caryying cost } & \$ 1 \text { per order }
\end{array}$$ The following supplier information is given:
 $$\begin{array} { l r r r r } 
&\text {W4}&\text {X3}&\text {Y2}&\text {Z1}\
\text { Materials units meeded } & 100,000 & 100,000 & 100,000 & 100,000 \
\text { Actual purchase price } & \$ 4.98 & 55 & 54.99 & \$ 5.01 \
\text { Number of purchase orders } & 10 & 20 & 30 & 18 \
\text { Number of defects } & 3 & 6 & 12 & 0 \
\text { Nurgher of deliveries } & 25 & 20 & 30 & 18
\end{array}$$
-Refer to the figure.Which supplier is least costly?

Quizplus · Accepted Answer

The Answer of Vitella Company manufactures a product sold to retailers. It is considering suppliers for its process. The supplier quality involves four activity areas:
$$\begin{array} { l l } 
\text { Activit Area } & \text { Cast Driver and Rate } \
\text { Order cost } & \$ 125 \text { per purchase order } \
\text { Defective units } & \$ 200 \text { per urit internal failure costs } \
\text { Delivery trips } & \$ 5 \text { per delivery kilametre } \
\text { Caryying cost } & \$ 1 \text { per order }
\end{array}$$ The following supplier information is given:
 $$\begin{array} { l r r r r } 
&\text {W4}&\text {X3}&\text {Y2}&\text {Z1}\
\text { Materials units meeded } & 100,000 & 100,000 & 100,000 & 100,000 \
\text { Actual purchase price } & \$ 4.98 & 55 & 54.99 & \$ 5.01 \
\text { Number of purchase orders } & 10 & 20 & 30 & 18 \
\text { Number of defects } & 3 & 6 & 12 & 0 \
\text { Nurgher of deliveries } & 25 & 20 & 30 & 18
\end{array}$$
-Refer to the figure.Which supplier is least costly?

Vitella Company Manufactures a Product Sold to Retailers The Following Supplier Information Is Given