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 1,040 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: Requirements (annual forecast) Weight per engine Order processing cost Inventory carry cost 12,480 units 25 pounds $ 215 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 (1,040/2 = 520 units). Two qualified suppliers have submitted the following quotations: ORDER QUANTITY 1 to 1,499 units/order 1,500 to 2,999 unita/order 3,000 + unita/order Tooling costs Distance SUPPLIER ! UNIT PRICE $ 556 546 536 $25,900 115 miles SUPPLIER 2 UNIT PRICE $ 554 551 534 $22.000 100 miles Your assistant has obtained the following freight rates from your carrier Truckload (42,000 lb. each load) Less-than-truckload: $0.80 per ton-nile $1.20 per ton-nile Note: Per ton-mile = 2,000 ib. per mile. a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.) Supplier 1 Supplier 2 Total cost - 2. Which supplier would you see? Super 2 Supplier 1. If you could move the lot size up to ship in truckload quarties, calculate the total cost for each supplier (Do not round intermediate calculations. Hound equired for sine for truckload and final answers to the nearest whole number) HINT. Use truckload cost rates and the lowest blent cost for a calculations. For example, if there are 8.3 orders per ye don't spot the orders into full truckloads and less than truckloads use the truckload rate for all 8.3 orders. For purchase cost, don't use two different unit costs for the complete orders and the 3 partial orders use the lowest (nt cost for all 8.3 purchase orders based on the lot ste needed for a road Supplier Supplier b-2. Would your suplier selection change Yes N