our company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company ses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming ear. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,050 units. ecause of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. he following data have been collected: Requirements (annual forecast) Weight per engine Order processing cost Inventory carry cost 12,600 units 25 pounds $165 per order 20 percent of the average value of inventory per year. Note: Assume that half of the lot size is in inventory, on average (1.050/2 525 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 SUPPLIER 1 UNIT PRICE SUPPLIER 2 UNIT PRICE $534 $532 524 514 529 512 $27,000 $24,800 130 miles 100 miles Distance Your assistant has obtained the following freight rates from your carrier: Truckload (53,000 pound each load): Less-than-truckload: Note: Per ton-mile 2.000 pound per mile. $0.80 per ton-mile $1.20 per ton-mile a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.) a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.) Supplier 1 Supplier 2 Total cost a-2. Which supplier would you select? O Supplier 2 O Supplier 1 b-1. If you could move the lot size up to ship in truckload quantities, calculate the total cost for each supplier. (Do not round intermediate calculations. Round "Required lot size for truckload" and final answers to the nearest whole number.) HINT: Use (full) truckload cost rates and the lowest (feasible) unit cost for all calculations. For example, if there are 8.3 orders per yea don't split the 8.3 orders into 8 full truckloads and 0.3 less-than-truckloads - use the full truckload rate for all 8.3 orders. For annual purchase cost, don't use two different unit costs for the 8 complete orders and the 0.3 partial orders use the lowest (feasible) unit cost for all 8.3 purchase orders based on the lot size needed for a full truckload. Total cost Supplier 1 Supplier 2