Make a choice between two of the following 2 suppliers
Supplier 1: selling price $12 per unit ( 1 unit = 1000 lbs) average lead time is 1 week, standard deviation of lead time =.5 week. Batch or lot size = 2000 units
Supplier 2: selling price $10 per unit ( 1 unit = 1000 lbs) average lead time is 2 week, standard deviation of lead time = 1 week. Batch or lot size = 4000 units
Answer the following questions:
A. Which supplier should you choose based on minimizing total cost, if her inventory holding cost h = .15 and her desire target CSL = 90%?
B. Create a supplier scorecard that Julie can use to compare different suppliers.