Problem $16-12($Algo$)$

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 $900$ 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:

$\backslash$table$[[$Requirements $($annual forecast$),10,800,$units$],[$Weight per engine,$20,$pounds$],[$Order processing cost,$155,$per order$],[$Inventory carry cost,$20,$percent of the average value of inventory per year$]]$

Note: Assume that half of lot size is in inventory on average units$).$

Two qualified suppliers have submitted the following quotations:

$\backslash$table$[[,$SUPPLIER $1,$SUPPLIER $2],[$ORDER QUANTITY,UNIT PRICE,UNIT PRICE$],[1$ to $1,499$ units$/$order$,$$$065,$$$600$