Sandy has historically made her suncreen herself. Moving forward she has decided to outsource her sunscreen from a supplier. She has narrowed it down to two suppliers. Supplier A has a fixed cost of $17 000 with a variable cost of $3.25 per unit. Supplier B has a fixed cost of $19 500 and a variable cost of $2.00. What is her Indifference Point between the two suppliers? $2498.75 1250 units None of these are correct 2000 units. $2500

Sandy has historically made her suncreen herself. Moving forward she has decided to outsource her sunscreen from a supplier. She has narrowed it down to two suppliers. Supplier A has a fixed cost of $17 000 with a variable cost of $3.25 per unit. Supplier B has a fixed cost of $19 500 and a variable cost of $2.00. What is her Indifference Point between the two suppliers? $2498.75 1250 units None of these are correct 2000 units. $2500

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 1.7A: Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each...

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Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?
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