b$-2.$ Would your supplier selection change?

Yes

NoYour 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 administrative restrictions, you must order the engines in lot sizes of $1,400$ units.

Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree

to reimburse the supplier. 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 units