Order lot size (units) 25,000 Annual demand (units) 500,000 Unit weight (lbs.) 1.5 Order processing cost (per order) $300 Inventory carrying rate % 20% Supplier 1 Supplier 2 Unit Price 1 to 19,999 units / order $35 $40 Unit Price 20,000 to 40,000 units / $33 $30 order Unit Price 40,000+ units / order $30 $28 Tooling Cost $150,000 $175,000 Distance (miles) 400 525 Supplier defect rate (% of engine cost) 1.50% 1.25% Truckload (TL > 40,000 lbs.): $1.25 per ton- mile Less-than-truckload (LTL): $1.75 per ton- mile (Note: per ton-mile = 2,000 pounds per mile What is the transportation cost for supplier 1? Less than or equal to $50,000 Greater than $50,000 but less than or equal to $100,000 Greater than $100,000 but less than or equal to $200,000 Greater than $200,000 Factor Quality Delivery Technology Order processing Customer service Unacceptable Conditional Acceptable Preferred Factor Scores Weight Supplier A Supplier B Supplier C Supplier D 35% 92 89 82 86 20% 91 87 91 92 10% 83 87 96 92 10% 72 81 95 91 25% 86 73 91 93 N 0-74.99 75 - 84.99 85-89.99 90+ Which supplier(s) would be considered conditional? Supplier A Supplier B Supplier Supplier D More than one of the suppliers Factor Quality Delivery Technology Order processing Customer service Weight 35% 20% 10% 10% Factor Scores Supplier A Supplier B Supplier C Supplier D 92 89 82 86 91 87 91 92 83 87 96 92 72 81 95 91 86 73 91 93 25% Rank suppliers from best to worst A,D,B,C C,D,BA D,C,A,B D,B,C,A