Supplier Waterfall

(550 points available)

QUESTIONS

1. Which is the cheapest supplier to supply the demand for Month 1? Hint: you can answer this
just by reading the assumptions and not doing any calculations. – 25 Points

a. Supplier A
b. Supplier B
c. Supplier C
d. Supplier D
e. Supplier E
f. Supplier F

2. If only Supplier E was available, what is the total cost of all orders placed over the 12
months? – 25 Points

a. $61,803
b. $61,813
c. $61,823
d. $61,843
e. $61,853
f. $61,863

3. If Suppliers B and E were available, what is the total cost of all orders placed over the 12
months? – 40 Points

a. $58,128
b. $58,138
c. $58,148
d. $58,158
e. $58,168
f. $58,178

4. If Suppliers B, D and E were available, what is the total cost of all orders placed over the 12
months? – 25 Points

a. $54,069
b. $54,079
c. $54,089
d. $54,099
 e. $54,109
f. $54,119

5. If Suppliers A, C and E were available, what is the total net cost of all orders placed over the
12 months? The “net cost” for this question and all later questions, should include the
impact of any rebates received. – 30 Points

a. $51,269
b. $51,279
c. $51,289
d. $51,299
e. $51,309
f. $51,319

6. If Suppliers A, C, D and E were available, what is the total net cost of all orders placed over
the 12 months? – 30 Points

a. $48,830
b. $48,840
c. $48,850
d. $48,860
e. $48,870
f. $48,880

7. If Suppliers A to E (inclusive) were available, what is the total amount of volume rebates
received from all suppliers? – 30 Points

a. $1,709
b. $1,719
c. $1,729
d. $1,739
e. $1,749
f. $1,759

8. What is the total net cost of all orders placed over the 12 months resulting from answering
the previous question? – 30 Points

a. $48,533
b. $48,543
c. $48,553
d. $48,563
e. $48,573
f. $48,583
 9. If all suppliers were available, what is the total amount of volume rebates received from all
suppliers? – 30 Points

a. $1,526
b. $1,536
c. $1,546
d. $1,556
e. $1,566
f. $1,576

10. What is the total net cost of all orders placed over the 12 months resulting from answering
the previous question? – 30 Points

a. $48,027
b. $48,037
c. $48,047
d. $48,057
e. $48,067
f. $48,077

Questions 11 to 16 refer to scenarios that change some assumptions. Each change only
applies to that question and not to any other questions. Therefore, you can attempt
questions 11 to 16 in any order that you want.

11. If all suppliers were available, and if Suppliers A to E (inclusive) each had a maximum
month order limit of 900 units per month, what is the total net cost of all orders placed over
the 12 months? – 35 Points

a. $50,729
b. $50,739
c. $50,749
d. $50,759
e. $50,769
f. $50,779

12. If all suppliers were available, and if Supplier B’s unit cost was $2.00 (instead of $1.50),
what is the total net cost of all orders placed over the 12 months? – 35 Points

a. Type in your answer. Please provide only the number rounded to the nearest
integer – for example, $123456.78 should be entered as “123457” without the
quotes.
13. If all suppliers were available, and if the customer demand volumes were 6 times in every
month (so for example, Month 2 is 2400 units instead of 400 units), what is the total net
cost of all orders placed over the 12 months? Remember, that it may be possible that due to
maximum order limits, there are insufficient suppliers to meet the customer demand. – 40
Points

a. Type in your answer. Please provide only the number rounded to the nearest
integer – for example, $123456.78 should be entered as “123457” without the
quotes.

14. If all suppliers were available, and if Supplier B had a volume rebate of 10% and a rebate
volume threshold of 5,000 units, what is the total net cost of all orders placed over the 12
months? – 40 Points

a. Type in your answer. Please provide only the number rounded to the nearest
integer – for example, $123456.78 should be entered as “123457” without the
quotes.

15. If all suppliers were available, and if Supplier C has a lead time of 3 months (instead of 2
months) and a rebate volume threshold of 17000 units (instead of 15000), what is the total
net cost of all orders placed over the 12 months? – 45 Points

a. Type in your answer. Please provide only the number rounded to the nearest
integer – for example, $123456.78 should be entered as “123457” without the
quotes.

16. If all suppliers were available, and if Supplier D had a volume rebate of 4% with a volume
threshold of 2000 units, what is the total net cost of all orders placed over the 12 months? –
60 Points

a. Type in your answer. Please provide only the number rounded to the nearest
integer – for example, $123456.78 should be entered as “123457” without the
quotes.