Figure 11-3
Awesome Products Company manufactures a product sold to retailers. It is considering suppliers for its process. The supplier quality involves four activity areas:
Activity Area Cost Driver and Rate
Order cost $120 per purchase order
Defective units $200 per unit internal failure costs
Delivery trips $5 per delivery mile
Carrying cost $1 per order
The following supplier information is given:

-Refer to Figure 11-3. Which supplier has the most defective units?
A) X3
B) Y2
C) Z1
D) They are equal.
Correct Answer:
Verified
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