The following data have been collected:

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

Two qualified suppliers have submitted the following quotations:

Your assistant has obtained the following freight rates from your carrier:

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.$)$

Answer is complete but not entirely correct.

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

O Supplier $2o.$

Supplier $1$

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 $8\mathrm{.}3$ 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.

Answer is complete but not entirely correct.

b$-2.$ Would your supplier selection change?

Yes

No