A manufacturer purchases 6000 cases of a certain component for $100 per case from two suppliers: Supplier A and Supplier B. Supplier A is currently responsible for 1/2 of the total demand. The two suppliers currently pay $2 per case for transportation and achieve the same average delivery time of 10 days. However, for each day that a supplier can reduce the average delivery time, the manufacturer is willing to shift 5% of its total purchase to the supplier offering the premium service. A supplier earns a margin of 25% of the selling price on each case before transportation cost kicks in. How much profit does Supplier A make currently?
+5
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A manufacturer purchases 6000 cases of a certain component for $100 per case from two suppliers: Supplier A and Supplier B. Supplier A is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Home » Business » A manufacturer purchases 6000 cases of a certain component for $100 per case from two suppliers: Supplier A and Supplier B. Supplier A is currently responsible for 1/2 of the total demand.