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Question & Answer: The Green Machine Manufacturing Company is also trying to decide which of two…..

What is the total cost of ownership for supplier 1 and 2?

The Green Machine Manufacturing Company is also trying to decide which of two suppliers to purchase engines from. Green Machine has agreed to cover the tooling cost for the supplier selected. The relevant information is provided Carry all calculations out to two decimal places rder lot size nual demand Engine weig Order processing co nventory carrying rate 10 pounds order 1% per year Unit Price 1 to 999 units orde Init Price 1000 to 2999 units order nit Tooling Cost $309 00 unitsorder 305 00 istance 10 miles 125 miles Truckload (TL 40,000 bs) $1.05 per ton-mile Less-than-truckload (LTL): S1.75 per ton-mile (Note: per ton-mile 2,000 pounds per mile

The Green Machine Manufacturing Company is also trying to decide which of two suppliers to purchase engines from. Green Machine has agreed to cover the tooling cost for the supplier selected. The relevant information is provided below. Carry all calculations out to two decimal places.

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