A doctors office makes screws for surgery.The screw consists of four component parts, one being the aluminum allow while the other three parts are made of medical grade plastics. AMM is evaluating three Tier 1 suppliers to manufacture the aluminum part of the orthopedic screw. Annual demand for this item is 20,000 units per year, with 365 days in a year.What is the total annual logistics cost for each supplier when Q=10,000 and Q=20,000? What supplier and order quantity do you recommend based on these total costs? List other criteria you might use to make the final supplier decision, and suggest metrics for measuring each criteria.
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