Question: answer all parts from a-1 through b-2 Your company assembles five different models of a motor scooter that is sold in specialty stores in the


Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year Due to the size of your warehouse and other administrotive restrictions, you must order the engines in lot sizes of 1,360 units. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the suppliet. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use The following data have been collected Note Assume that half of the lot size is in inventory, on average (1.360/2=680 units). Two qualified suppliers hove submitted the following quotations Your assistant has obtained the following freight rates from your carrier: Your assistant has obtained the following freight rates from your carrier: Note Per ton-mile =2,000 pound per mile: a-1. Calculate the total cost for each supplier (Round your answers to the nearest whole number.) a-2. Which suppller would you select? Supplier 1 Supplier 2 b-1. If you could move the lot size up to ship in truckload quantities, calculate the total cost for each supplier. (Do not round intermediate calculations. Round "Required lot size for truckload" and final answers to the nearest whole number.) HINT: Use (ful) truckload cost rates and the lowest (feasble) unit cost for all calculations. For example, if there are 8.3 orders per year. doatt split the 8.3 orders into 8 full trucklosos and 0.3 less than-trucklosds - use the full truckload rate for all 8.3 orders For annual purchase cost, dont use two different unit costs for the 8 complete orders and the 0.3 partal orders - use the lowest (feasible) unit cost for all 8.3 purchase orders based on the lot size needed for a full trucklond b-2. Would your supplier selection chonge? Yes No
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