GetFit is a company that makes high-end exercise machines and the machine Pilates Power is their most popular product. For each production cycle of the Pilates Power machines, GetFit purchases 5 SKUS: W32A, Y33A, W32B, X33B, and Z32A. There are four suppliers: Supplier A, B, C, and D. The number of units needed in each production cycle and the prices for each unit offered by the suppliers are listed in Table 1a. The maximum total number of units that each company can supply are listed in Table 1b. For example, if Supplier C supplies 1600 pieces of SKU Z32A, it cannot supply anything else. Table 1a. Number of units needed and unit prices (in dollars) offered by the suppliers. Number of units needed Supplier A Supplier B 4000 26000 Parts W32A Y33A W32B 5000 X33B 2000 500 21000 109 27 230 225 Z32A 324 354 Table 1b. The maximum total number of parts that each company can supply Supplier A Supplier B Supplier C Supplier D 17500 15600 1600 26300 What is the minimum total procurement cost for GetFit? What is the total number of units purchased from these companies? 538 108 28 Supplier C 570 116 30 207 352 Supplier D 566 117 29 245 378
GetFit is a company that makes high-end exercise machines and the machine Pilates Power is their most popular product. For each production cycle of the Pilates Power machines, GetFit purchases 5 SKUS: W32A, Y33A, W32B, X33B, and Z32A. There are four suppliers: Supplier A, B, C, and D. The number of units needed in each production cycle and the prices for each unit offered by the suppliers are listed in Table 1a. The maximum total number of units that each company can supply are listed in Table 1b. For example, if Supplier C supplies 1600 pieces of SKU Z32A, it cannot supply anything else. Table 1a. Number of units needed and unit prices (in dollars) offered by the suppliers. Number of units needed Supplier A Supplier B 4000 26000 Parts W32A Y33A W32B 5000 X33B 2000 500 21000 109 27 230 225 Z32A 324 354 Table 1b. The maximum total number of parts that each company can supply Supplier A Supplier B Supplier C Supplier D 17500 15600 1600 26300 What is the minimum total procurement cost for GetFit? What is the total number of units purchased from these companies? 538 108 28 Supplier C 570 116 30 207 352 Supplier D 566 117 29 245 378
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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