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Business, 19.08.2021 01:00 brooklyn4932

The Burdell Wheel and Tire Company assembles 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 PER SHIPMENT ANNUAL SHIPPING COSTS PRICE / TIRE (p) INVENTORY HOLD COSTS (H) LEAD TIME (DAYS) ADMIN. COSTS LEXINGTON TIRE 2,000 $18,000 $30 $6.00 6 $15,000 IRMO AUTO 1,000 $25,000 $29 $5.80 4 $18,000 30) Refer to the instruction above. What are the annual material savings available when comparing the two suppliers

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The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture...
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