Order lot size (units)	2,800
Annual demand (units)	140,000
Unit weight (lbs.)	15
Order processing cost (per order)	$180
Inventory carrying rate %	25%

	Supplier 1	Supplier 2
Unit Price 1 to 999 units / order	$315	$320
Unit Price 1000 to 2999 units / order	$310	$314
Unit Price 3000 + units / order	$300	$305
Tooling Cost	$15,000	$18,000
Distance (miles)	160	110
Supplier defect rate (% of engine cost)	2.0%	1.5%

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 carrying cost for supplier 1?

a)Less than or equal to $50,000

b)Greater than $100,000 but less than or equal to $200,000

c)Greater than $50,000 but less than or equal to $100,000

d)Greater than $200,000