13. Given the following information, use total cost analysis to determine which supplier is more cost-effective. Late delivery of raw material results in 60 percent lost sales and 40 percent back orders of finished goods. 1,000 120,000 units 22 pounds $125/order 20% per year 10% per year 15% $4,500 $15 per unit Order lot size Requirements (annual forecast) Weight per engine Order processing cost Inventory carrying rate Cost of working capital Profit margin Price of finished goods Back order cost UNIT PRICE 1 to 999 units/order 1,000 to 2,999 units/order 3,000+ units/order Tooling cost SUPPLIER1 $50.00 $49.00 $48.00 $12,000 2/10, net 30 125 miles 2% 19% SUPPLIER 2 $49.50 $48.50 $48.00 $10,000 1/10, net 30 100 miles 296 2% Terms Distance Supplier Quality Rating Supplier Delivery Rating Truckload (TL 2 40,000 lbs): Less-than-truckload (LTL): 2,000 lbs per mile; number of days per year-365 $0.85 per ton-mile $1.10 per ton-mile Note: per ton-mile