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The following data have been collected: Requirements (annual forecast) Weight per engine Order processing cost Inventory carry cost 13,800 units 30 pounds 170 per order 20 percent of the average value of inventory per year Note: Assume that half of lot size is in inventory on average (1,150/2 = 575 units). Two qualified suppliers have submitted the following quotations: ORDER QUANTITY 1 to 1,499 units/order 1,500 to 2,999 units/order 3,000 + units/order Tooling costs Distance SUPPLIER 1 UNIT PRICE $ 697 695 694 $26,080 125 miles SUPPLIER 2 UNIT PRICE $ 696 696 693 $22,600 100 miles Your assistant has obtained the following freight rates from your carrier: s Truckload (50,000 lbs. each load): Less-than-truckload: $0.80 per ton-mile $1.20 per ton-mile Note: Per ton-mile = 2,000 lbs. per mile. a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.) Supplier 1 Supplier 2 Total cost Supplier 1 Supplier 2 Total cost a-2. Which supplier would you select? Supplier 2 Supplier 1 -5 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 (full) truckload cost rates and the lowest (feasible) unit cost for all calculations. For example. If there are 8.3 orders per yea don't split the 8.3 orders into 8 full truckloads and 0.3 less-than-truckloads - use the full truckload rate for all 8.3 orders. For annual purchase cost, don't use two different unit costs for the 8 complete orders and the 0.3 partial orders - use the lowest (feasible) unit cost for all 8.3 purchase orders based on the lot size needed for a full truckload, Supplier 1 Supplier 2 Total cost b-2. Would your supplier selection change? Yes No