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I only need part B Your company assembles five diflerent models of a motor scooter that is soild in specialty stores in the United States.

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Your company assembles five diflerent models of a motor scooter that is soild in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,160 unns Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process tor which you agree to reimburse the supplier. Your assistant hars oblained quoles torm two reliable engine suppliers and you need to decide which to use. The following data have been collected Requirements (annual forecast) Weight per engine Order processing cost Inventory carry cost 3,920 units 25 pounds 120 per order 20 percent of the average value of inventory per year Note: Assume that hait of lot size is in inventiory on average (1.1602 580 units). Two quained suppliers have submited the tollowing quotations SUPPLIER1 SUPPLIER 2 UNIT PRICE UNIT PRICE ORDER QUANTITY 1 to 1,499 units/order 1,500 to 2,999 units/order 3,000+ units/order Tooling costs Distance 5 536 536 530 29,200 5 537 535 534 $32.860 35 miles 100 miles Your assistant has obtained the following freight rates from your carmer Truckload (48 000Is oach load) Less-than-truckload 50 80 per ton-mile $1 20 per ton-mile Aloe per ton-mile = 2.000 bs per mile Your assistant has obtained the following freight rates from your camer Truckload (48 000 ibs. each load) Less-t $0.80 per ton-mile $1.20 per ton-mile note per ton-mile 2,000 ts per mie. a-1. Calculate the total cost for each supplier (Round your answers to the nearest whole number.) Total cost 7599820 S7574816 a-2. Which supplier would you select? O Supplier 1 e Supplier 2 b-1. If you could move the lot size up to ship in truckload quantnies, calculate the total cost for each supplier. (Do not round intermediste calculations. Round "Required lot size for truckload" and final answers to the nearest whole number.) HINT Use (full) truckload cost rates and the lowest (leasible) unit cost for all calculations. For example i there are 8 3 orders per year, dont spilt the 8 3 arders into B full truckboads and 0 3 less-tharn- truckloads use the full truckload rate for all 8.3 orders. For annual purchase cost, don't use two derent unit costs for the 8 compiete orders and the 0 3 partial orders-use the kwest (teasite) unvt Supplier 1 Supplier 2 Total cost b-2. Would your suppler selection change? Yes No

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