Problem 13-12 (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 fot sizes of 1150 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 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 the lot size is in inventory, on average (1.150/2 = 575 units) Two qualified suppliers have submitted the following quotations SUPPLIER 1 SUPPLTER 2 ORDER QUANTITY UNIT PRICE UNIT PRICE 1 to 1,499 units/order: S697 $ 696 1,500 to 2,999 units/order 687 3,ese units/order 672 676 Tooling costs $26,080 $22,600 Distance 125 miles 100 miles 693 Your assistant has obtained the following freight rates from your camer Truckload (50,000 lb. each load): Less-than-truckload: $0.80 per ton-mile: $1.2e per ton-mile Note Per ton-mile-2.000 lb. per mile. --1. Calculate the total cost for each supplier (Round your answers to the nearest whole number.) Supplier 1 Total cost Supplier 2 $ 9.729.463 -2Which supplier would you select? Supplier Supplier 2 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 (fully truckload cost rates and the lowest (feasible) unit cost for all calculations. For example, if there are 8 3 orders per year, don't split the 83 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