TMC Excel Question
17. ;The owner of a diner has summarized the price lists from four potential vendors (see the ; following table) who want to supply her with cooking oil. ; Monthly usage is 300 gallons, ordering cost is $10 per order, and the monthly carrying cost is $ .50 a gallon. ;
; Which vendor should she use, and what order quantity is best if she wants to minimize total annual costs (TMC).
OUR PROCESS
Order
Payment
Writing
Delivery
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;VENDOR W ; ; ; ;VENDOR X ; ; ; ; ; VENDOR Y ; ; ; ;VENDOR Z ;
Quantity ; Price ; ;Quantity ; Price ; ;Quantity ; Price ; ;Quantity ; Price
1-99 ; ; ; ; ; $25 ; ; ;1-79 ; ; ; $25 ; ; ; ;1-25 ; ; ; ;$27 ; ; ; ;1-59 ; ; ; $26
100-399 ; ; ;24 ; ; ; 80-139 ; ; 24 ; ; ; ;26-89 ; ; ; ;25 ; ; ; ;60-139 ; ; 25
400+ ; ; ; ; ; 22 ; ; ; 140-299 ; ;23 ; ; ; 90-199 ; ; ;24 ; ; ; 140-249 ; ;24
; ; ; ; ; ; ; ; ; ; ; ; ; ; ; 300+ ; ; ; ; 22 ; ; ; ;200+ ; ; ; ;23 ; ; ; ;250+ ; ; ; ;23
Since demand and carrying costs are both expressed on a monthly basis, you will need to multiply these values by 12 to put into annual terms. ;You will be using an EXCEL template that has already been created for quantity discount inventory problems and can be found at Stevenson’s online learning center atwww.mhhe.com/stevenson11e. ;ALL 8 OUTPUT PAGES MUST BE INCLUDED IN ANSWER!