Dusty is evaluating three bids to supply fence hardware for


Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced. Breezy submits a bid of? $40 per unit with a defect rate of? 3%; Lady's bid is? $50 per unit with a defect rate of? 0.5%; and? Spike's bid is? $30 per unit with a defect rate of? 5%. If a section of fence? fails, it costs an average of? $500 in losses and herding costs to round up all of the capybaras. Dusty believes it will take 500 units to fence in this pasture? configuration; which supplier should win the? business?

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Operation Management: Dusty is evaluating three bids to supply fence hardware for
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