Supply Chain Management
jasin.
total_landing_cost.docx1. BJB manufactures high-end bikes and is looking for a source for pedal sets. BJB needs 1,625 sets a month. Supplier A is a domestic firm and Suppliers B and C are located overseas. Cost information for the suppliers is as follows:
B) Suppose that international and inland freight are fixed for volumes up to 3,500 sets a month. Under this assumption, which supplier would have the lowest landed cost if demand were cut in half? If demand doubled?
3,500
1,750
7,000
Supplier ASupplier BSupplier C
Price per set$101$95$93
Packing cost per Set$2$3.25$4
Total inland freight$950$950$1,100
Total International transportation costs$3,750$6,000
