A large multinational company is trying to determine the best sourcing strategy for its line of upscale consumer-oriented generators that are sold in the United States. This company has manufacturing facilities around the world, but for this generator they plan to source from either its Mexico plant or its Malaysia plant. Each option has different costs and lead times for manufacturing and shipping as shown in the table below: Cost Item Mexico Malaysia Avg Monthly Demand 1,000 1,000 Mfg Setup Cost (per batch) $290 $165 Mfg Cost (per unit) $128.80 $121.11 Batch Size 500 2000 Transportation Cost (per unit) $3.45 $11.84 Transportation Lead Time (days) 3 60 Holding Cost (per unit per year) $52.74 $52.74 For the following questions assume there are 365 days per year. How many batches per year would be required at the Mexico plant to satisfy annual demand? (Display your answer to two decimal places.) Spell check How many batches per year would be required at the Malaysia plant to satisfy annual demand? (Display your answer to two decimal places.) Given the number of batches required from Mexico to support the annual demand, what would be the annual setup cost? (Display your answer to two decimal places.) Given the number of batches required from Malaysia to support the annual demand, what would be the annual setup cost? Given the batch size, what is the total manufacturing cost per unit for Mexico? (Remember to incorporate setup cost into your calculation and display your answer to two decimal places.) Given the batch size, what is the total manufacturing cost per unit for Malaysia? (Remember to incorporate setup cost into your calculation and display your answer to two decimal places.) Assuming holding costs are incurred as soon as the generators ship from the plant, what is the holding cost per unit for generators shipping from Mexico to the United States? (Display your answer to two decimal places.) Assuming holding costs are incurred as soon as the generators ship from the plant, what is the holding cost per unit for generators shipping from Malaysia to the United States? (Display your answer to two decimal places.) Spell check What is the total landed cost per unit for generators coming from Mexico? (Display your answer to two decimal places.) What is the total landed cost per unit for generators coming from Malaysia? (Display your answer to two decimal places.)
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