Habitat for Humanity plans to build 42 small houses on land donated to them by a wealthy philanthropist outside Charlotte, North Carolina. A buyer, Claire Klaudia, for Habitat is considering two wholesale appliance US suppliers (A and B) and one Chinese supplier (C) to provide the “appliance bundle.” Each bundle includes a combo single oven and cooktop range, a refrigerator, a dishwasher, and a microwave, and is priced as a unit. The information for this problem is shown in in the Data for Problem 48 table below. Assume annual demand is 100 appliance units, there are 365 days in a year, and price discounts are given when Q = 100 units.

a. What is the total annual supply chain costs for each supplier when Q = 50 units and Q = 100 units?

b. What supplier and order quantity do you recommend based on these total costs?