Order lot size 1,600 units Annual demand 19,200 units Weight Order processing cost Inventory carrying rate 22 pounds $200 per order 13% per year Supplier 1 Unit Price 1 to 2,000 units/ order $150 Unit Price 2,001 to 2,999 units / order $145 Unit Price 3,000+ units/ order $140 Tooling Cost $13,500 Distance 110 miles supplier defect rate (% of engine cost) 396