Multiple Choice
Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.
-Refer to the instruction above.The high-cost supplier desperately wants the Burdell Company business.They have indicated that if Burdell will select them as their supplier,they will not charge for shipping.How does this change the decision on tire suppliers?
A) The high-cost supplier is now lower,and becomes the tire supplier for Burdell.
B) The suppliers are now equal cost,and Burdell can select either supplier.
C) It doesn't change the decision-they are still the high-cost supplier.
D) More information is required to make this decision.
Correct Answer:
Verified
Correct Answer:
Verified
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