During its supplier selection process, a company has narrowed its options to two suppliers that offer different contracts listed in the table below. Supplier 1 allows the company to order in smaller lot sizes but has a higher per unit shipping cost. Supplier 2 offers a lower shipping cost but requires larger orders. The suppliers also use differ in their lead times due to their respective distances from the buyer. The company is confident that it will be able to negotiate a per unit material cost of $100 with either supplier. The daily demand for the companys product is normally distributed with a mean of 300 units and a standard deviation of 20 units, and the company maintains a CSL of 85 percent during the delivery lead time. The annual cost of holding inventory is 25 percent of the inventory value.

Supplier	Lot Size	Shipping cost ($/unit)	Lead Time (days)
Supplier 1	1000	0.6	1
Supplier 2	2500	0.45	2

Question 1: Calculate the annual transportation costs of ordering from each supplier.