$3.$ Paragon Electric needs to select a supplier for its manufacturing plant. Tables below show the annual requirements and the proposals submitted by two suppliers:

Requirements $($annual forecast$)60,000$ units

Inventory carrying rate $20\%$ per year

Transportation cost $$0\mathrm{.}02$ per unit$-$mile

Order Processing Cost $$100$ per order

Supplier $1$ Supplier $2$

Unit Price $$10$ $$12$

Supplier Fixed Lot Size $($units$)60005000$

Distance $($miles$)200120$

Supplier Quality Rating $($defects$)0\mathrm{.}8\%1\mathrm{.}0\%$