Problem 16-12 (Algal Your company assembles five different models ofa 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 forthese engines forthe coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of1,240 units. Because of the unique characteristics ofthe 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} 14,886 units weight per engine 25 pounds Order processing cost $ 196 per order Inventory carryr cost 26 percent of the average value of inventory per year Nora'Assume that half of lot size is in inventory on average [1.2402 = 620 units}. Two qualified suppliers have submitted the following quotations: SUPPLIER 1 SUPPLIER 2 ORDER QUANTITY LNIT PRICE UNIT PRICE 1 to 1,499 unitsforder $ 5?5 $ 572 1,566 to 2,999 unitsforder 559 572 3,666 + unitsforder 558 565 Tooling costs $36,166 $28,666 Distance 126 miles 166 miles [ Your assistant has obtained the following freight rates from your carrier: Truckload (45,966 lbs. each load): $6.86 per tonmile Lessthantruckload: $1.26 per tonmile Note: Per ton-mile = 2,000 lbs. per mile. a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.) a-2. Which supplier would you select? 0 Supplier 2 O Supplier'l 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 numberJ HINT: Use [full] truckload cost rates and the lowest {feasible} unit cost for all calculations. For example, ifthere are 8.3 orders per year, 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. b-2. Would your supplier selection change? O Yes O No