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You need to select a vendor for your next CBIC (cell-based integrated
circuit) project. Your research yields
the following information:
| Cost Type |
Vendor A |
Vendor B |
Vendor C |
Vendor D |
| CAD tools, training, circuit development, prototype
fabrication |
$500K |
$250K |
$350K |
$200K |
| Unit part cost in production |
$12 |
$15 |
$8 |
$9 |
- Which vendor would you select in order to minimize total costs if you
expect the volume to be 100K parts per year for two years? NOTE: "K" = "1000"
in this context, not "1024."
- Which vendor would you select in order to minimize total costs if you
expect the volume to be 20K parts per year for three years?
- Which vendor would you select to be a secondary supplier, i.e., what is
the next-best vendor, in order to minimize total costs if you expect the
volume to be 1000K parts per year for two years?
- Plot the total cost of parts as a function of number of parts (or volume).
Identify the break-even volume for each of the possible pair-wise vendor
comparisons (e.g., Vendor A compared to Vendor B, Vendor A compared to Vendor
C, and so on). Refer to the graph in Figure 1.11 in your textbook for an
example.
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