Note: Per ton$-$mile $=2,000$ pound per mile.

a$-1.$ Calculate the total cost for each supplier.

Note: Round your answers to the nearest whole number.

a$-2.$ Which supplier would you select?

Supplier $1$

S Supplier $2$

b$-1.$ If you could move the lot size up to ship in truckload quantities, calculate the total cost for each supplier.

Note: Do not round intermediate calculations. Round "Required lot size for truckload" and final answers to the nearest whole

number.

HINT: Use $($full$)$ truckload cost rates and the lowest $($feasible$)$ unit cost for all calculations. For example, if there are $8\mathrm{.}3$ orders per year,

don't split the $8\mathrm{.}3$ orders into $8$ full truckloads and $0\mathrm{.}3$ less$-$than$-$truckloads $-$ use the full truckload rate for all $8\mathrm{.}3$ orders. For annual

purchase cost, don't use two different unit costs for the $8$ complete orders and the $0\mathrm{.}3$ partial orders $-$ use the lowest $($feasible$)$ unit

cost for all $8\mathrm{.}3$ purchase orders based on the lot size needed for a full truckload.Problem $13-12($Algo$)$

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References

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 administrative restrictions, you must order the engines in lot sizes of $1,300$ 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 ONLY PART B NEEDS ANSWERED