note per ton-mile= 2000 LB per mile

Problem 13-12 (Algo) 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 1,240 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: ed Requirements (annual forecast) Weight per engine Order processing cost Inventory Carry cost 14,880 units 25 pounds 190 per order 20 percent of the average value of inventory per year $ nices Note: Assume that half of the lot size is in Inventory, on average (1.240/2-620 units). Two qualified suppliers have submitted the following quotations: ORDER QUANTITY 1 to 1.499 units/order 1,500 to 2,999 units/order 3,000 + units/order Tooling costs Distance SUPPLIER 1 UNIT PRICE $ 575 565 555 $30,100 120 miles SUPPLIER 2 UNIT PRICE $ 572 570 553 $28,000 100 miles Your assistant has obtained the following freight rates from your carrier: Truckload (45,000 lb. each load): Less-than-truckload $0.80 per ton-mile $1.20 per ton-mile Note: Assume that half of the lot size is in inventory, on average (1.240/2 = 620 units). Two qualified suppliers have submitted the following quotations: SUPPLIER 1 UNIT PRICE SUPPLIER 2 UNIT PRICE $ 572 ORDER QUANTITY 1 to 1,499 units/order 1,500 to 2,999 units/order 3,000 + units/order Tooling costs Distance 570 565 555 $30,100 120 miles 553 $28,000 100 miles 03:45.08 ipped Your assistant has obtained the following freight rates from your carrier: Book Truckload (45,000 lb. each load) Less-than-truckload: $0.80 per ton-mile $1.20 per ton-mile Tences Note: Per ton-mile - 2,000 lb. per mile. 0-1. Calculate the total cost for each supplier (Round your answers to the nearest whole number.) Supplier 1 Supplier 2 Total cost Total cost support Suppler? a-2. Which supplier would you select? Supplier 2 Supplier 1