Supplier

Yanda Electric Southwest Motors

Price
Product Cost / Unit
$8.40
$6.80
Packaging / Unit
$0.35
$0.40
Additional cost
$0.00
$0.00
Unit Cost
$8.75
$7.20
Order Quantity
16000
16000
Total Purchase Cost
$140,000.00
$115,200.00
Acquisition cost
Tooling
$6,000.00
$58,000.00
Transportation Cost / Cwt
$7.50
$17.25
Trasportation Cost
$3,000.00
$6,900.00
Freight Forwarder
$0.00
$300.00
Tarrifs/ Duties @ 5%
$0.00
$5,760.00
Fees and Commisions
Broker Fee
$0.00
$600.00
Handling Fee
$0.00
$0.00
In-House Cost
Receiving/Inspection
Defective Units (PPM)
80
160
Inspection Cost @ .05
$800.00
$800.00
Initial Inspection Cost (70% @ 4.5)
$252.00
$504.00
Final Inspection Cost (27% @17.5)
$378.00
$756.00
Warranty Cost (3% @ 60)
$144.00
$288.00
Inventory
Lead time (in Weeks)
3
5
Inventory Stock
16000
16000
Delay time (in Weeks)
1
3
Safety Stock
4000
12000
Safety stock cost
$35,000.00
$86,400.00
Total Units Inventory
20000
28000
Warehousing Cost
$4,000.00
$5,600.00
Carrying Charges (16% of W.H Cos $16,800.00
$23,040.00

Total Cost per Shipment

No. of shpments Per Year
Annual Cost of Shipment
Annual Inventory Cost

$150,574.00
13
$1,957,462.00
$20,800.00

$189,108.00
13
$2,458,404.00
$28,640.00

Total Cost Of Ownership

$1,978,262.00

$2,487,044.00

Daekoo Motors
$7.07
$0.50
$0.23
$7.80
16000
$124,800.00
$42,000.00
$11.00
$4,400.00
$0.00
$6,240.00
$600.00
$1,800.00

16
$800.00
$50.40
$75.60
$28.80
6
16000
3
12000
$93,600.00
28000
$5,600.00
$24,960.00

$180,794.80
13
$2,350,332.40
$30,560.00
$2,380,892.40

Assumptions
1 CWT
1 Shipment
1 Year
1 Week
1 month
1 .4 HP Motor
Warehousing cost

40 Motors
16K Motors
13 Shipments
4000
4 Weeks
0.1666666667
1.2 per Cubic foot

Supplier
Yanda Electric Southwest Motors
Price
Product Cost / Unit
$8.40
$6.80
Packaging / Unit
$0.35
$0.40
Additional cost
$0.00
$0.00
Unit Cost
$8.75
$7.20
Order Quantity
24000
24000
Total Purchase Cost
$210,000.00
$172,800.00
Acquisition cost
Tooling
$0.00
$0.00
Transportation Cost / Cwt
$7.50
$17.25
Trasportation Cost
$4,500.00
$10,350.00
Freight Forwarder
$0.00
$300.00
Tarrifs/ Duties @ 5%
$0.00
$8,640.00
Fees and Commisions
Broker Fee
$0.00
$600.00
Handling Fee
$0.00
$0.00
In-House Cost
Receiving/Inspection
Defective Units (PPM)
120
240
Inspection Cost @ .05
$1,200.00
$1,200.00
Initial Inspection Cost (70% @ 4.5)
$378.00
$756.00
Final Inspection Cost (27% @17.5)
$567.00
$1,134.00
Warranty Cost (3% @ 60)
$216.00
$432.00
Inventory
Lead time (in Weeks)
3
5
Inventory Stock
24000
24000
Delay time (in Weeks)
1
3
Safety Stock
6000
18000
Safety stock cost
$52,500.00
$129,600.00
Total Units Inventory
30000
42000
Warehousing Cost
$6,000.00
$8,400.00
Carrying Charges (16% of W.H Cos $25,200.00
$34,560.00

Total Cost per Shipment

No. of shpments Per Year
Annual Cost of Shipment
Annual Inventory Cost

$216,861.00
13
$2,819,193.00
$31,200.00

$196,212.00
13
$2,550,756.00
$42,960.00

Total Cost Of Ownership

$2,850,393.00

$2,593,716.00

Daekoo Motors
$7.07
$0.50
$0.23
$7.80
24000
$187,200.00
$0.00
$11.00
$6,600.00
$0.00
$9,360.00
$600.00
$1,800.00

24
$1,200.00
$75.60
$113.40
$43.20
6
24000
3
18000
$140,400.00
42000
$8,400.00
$37,440.00

$206,992.20
13
$2,690,898.60
$45,840.00
$2,736,738.60

Assumptions
1 CWT
1 Shipment
1 Year
1 Week
1 month
1 .4 HP Motor
Warehousing cost

40 Motors
16K Motors
13 Shipments
6000
4 Weeks
0.1666666667
1.2 per Cubic foot