Table 14.1 Alison's Accessories Is a High Volume Worldwide Fashion House with House

question 79

Multiple Choice

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table) . All costs are in US Dollars.
Unit costs

Freight Costs

Other Costs

-Use Table 14.1 to answer the question. Kalil has a sorority sister that works at Supplier A and would like to help her out by awarding the supply contract. Which shipping volume should she choose in order to rig the bid and give her sister's company the contract?

• A) 15,000 units
• B) 25,000 units
• C) 50,000 units
• D) None of these, the shipping volume would need to be higher than the table goes.

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