1. what is the TCO of Custom shirts?2. what is the difference between the quality...
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1. what is the TCO of Custom shirts?
2. what is the difference between the quality costs between both suppliers?
2. After careful consideration, Jenn has decided to move forward with purchasing shirts from another supplier for the first year of business. She is currently deciding between two different suppliers: Custom Shirts and A-Z T's. Each shirt purchased will be a custom order. Both companies require that orders be placed on Monday of each week and shirts will be shipped by Friday of the same week. A-Z T's charges an extra $10 for any order that contains custom shirts. Custom Shirts does not charge this extra fee. Jenn will operate her business 26 weeks per year and expects to sell 400 shirts. PROVIDER Custom Shirts A-Z T's Cost of item Shirt Cost (per shirts 13.50 S 13.00 Transportation Freight movement (per shipment) 255 30 Ordering Costs Ordering Cost (per orders Add'l Order Cost for custom shirts (per order) $ 15S S 2.00% 15 10 2.50% Quality Costs (1.e. scrap/rework)
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