3. Your company designs and builds highly modified, high-performance golf carts. The same gasoline engine is used on all models. You are the Sourcing Manager charged with selecting the engine supplier that will provide engines for the next several years. Due to some temporary restraints on your working capital you are currently restricted to ordering these engines in quantities of 1000 per order. There will be a one-time tooling charge required by your vendor that provides the correct connection to the transmissions that come from multiple sources and you have agreed to pay for the tooling. Your RFQ (Request for Quote) to (2) equal quality engine suppliers will provide them with this data: NOTE: Assume half of Lot Size is inventory on average (1,000/2=500y units) In response, the two engine suppliers have provided you with this information: You must also consider freight costs: Continued on next page A: Perform a Total Cost of Ownership based on the data provided ( 30 pts) B: Which is the better supplier for your situation? (5 pts) C: If you could financially afford to order in full truckload quantities, who would be your supplier and why? Note change in average inventory.(Provide the financial reasons) ( 20 pts) 3. Your company designs and builds highly modified, high-performance golf carts. The same gasoline engine is used on all models. You are the Sourcing Manager charged with selecting the engine supplier that will provide engines for the next several years. Due to some temporary restraints on your working capital you are currently restricted to ordering these engines in quantities of 1000 per order. There will be a one-time tooling charge required by your vendor that provides the correct connection to the transmissions that come from multiple sources and you have agreed to pay for the tooling. Your RFQ (Request for Quote) to (2) equal quality engine suppliers will provide them with this data: NOTE: Assume half of Lot Size is inventory on average (1,000/2=500y units) In response, the two engine suppliers have provided you with this information: You must also consider freight costs: Continued on next page A: Perform a Total Cost of Ownership based on the data provided ( 30 pts) B: Which is the better supplier for your situation? (5 pts) C: If you could financially afford to order in full truckload quantities, who would be your supplier and why? Note change in average inventory.(Provide the financial reasons) ( 20 pts)