Question: Requirements ( annual forecast ) 1 5 , 0 0 0 units Weight per engine 3 3 pounds Order processing cost $ 1 2 0

Requirements (annual forecast)15,000 units
Weight per engine 33 pounds
Order processing cost $120 per order
Inventory carry cost 20 percent of the average value of inventory per year
Note: Assume that half of the lot size is in inventory, on average (1,250-: 2=625 units).
Two qualified suppliers have submitted the following quotations:

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