Need help with me this question. Had to screen shot in two pictures but it is in order
Problem 13-12 Your company assembles five different models of a motor scooter that is sold 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 at least 1,420 units. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected: 17,040 units Requirements (annual forecast) Weight per engine 25 pounds Order processing cost 40 per order Inventory carry cost 20 percent of the average value of inventory per year Note: Assume that half of lot size is in inventory on average (1,420/2 710 units) Two qualified suppliers have submitted the following quotations SUPPLIER 1 SUPPLIER 2 ORDER QUANTITY UNIT PRICE UNIT PRICE 1 to 1.499 units/order S 454 452 1,500 to 2,999 units/order 450 452 448 3,000 units/order 445 $27,980 Tooling costs $25,800 Distance 120 miles 100 miles Your assistant has obtained the following freight rates from your carrier. Truckload (43,000 lbs. each load): $0.80 per ton-mile Less-than-truckload $1.20 per ton-mile Problem 13-12 Your company assembles five different models of a motor scooter that is sold 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 at least 1,420 units. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected: 17,040 units Requirements (annual forecast) Weight per engine 25 pounds Order processing cost 40 per order Inventory carry cost 20 percent of the average value of inventory per year Note: Assume that half of lot size is in inventory on average (1,420/2 710 units) Two qualified suppliers have submitted the following quotations SUPPLIER 1 SUPPLIER 2 ORDER QUANTITY UNIT PRICE UNIT PRICE 1 to 1.499 units/order S 454 452 1,500 to 2,999 units/order 450 452 448 3,000 units/order 445 $27,980 Tooling costs $25,800 Distance 120 miles 100 miles Your assistant has obtained the following freight rates from your carrier. Truckload (43,000 lbs. each load): $0.80 per ton-mile Less-than-truckload $1.20 per ton-mile
