Fans-and-More, Inc. assemble controllers for ceiling fans. The data given below provides information on a plastic case for fan infrared controllers produced by one of their suppliers, Byannan, Inc. The plastic case is made using injection molding machines. Byannan requires a minimum order quantity of 150,000 units. The supply chain is assumed to operate 250 days a year.

1. Use the Total Supply Chain Cost Excel template to find the total supply chain cost. Do not round intermediate calculations. Round your answer to the nearest dollar.

   Annual Demand (D)	Price per Unit (P)	Oversight Cost per Unit (O)	Transport Cost per Unit (Ct)	Order Cost (Co)	Cost to Store One Unit One Year (Ch)	Order Lead Time in Days (L)
   2,700,000	$0.75	$0.26	$0.05	$325	$0.26	110

   Total supply chain costs: $

2. Due to political and loading dock unrest in Byannans home country, you must decide whether to increase order sizes to 750,000 units and carry more inventory to support fan sales. A fan with no controller is not a sellable stock-keeping-unit. Calculate the new total supply chain cost. Do not round intermediate calculations. Round your answer to the nearest dollar.

   Total supply chain costs under new order size: $

   What order size is best? What do you recommend Fans-and-More do?

   In the long-term period, Fans-and-More Inc. should choose the order size of

units and should dual sourcing.