The Harsd Company manufactures a major electronic component at a rate of 400 units a day. The sales forecast for the following year has been estimated by a consulting company and it is expected that 10,000 components will be sold. The manufacturing run cost for the company is calculated at a fixed cost of $ 5,000 and a variable cost of $ 40 per unit. Consider 250 business days per year. You have been asked to evaluate the purchase of this component with two vendors listed below: 

Delphi, a major supplier of electronic components offers a price of $ 43 per unit but due to the size of this company, it requires that each order be a minimum of 1500 units since Delphi covers the shipping costs. The employment contract stipulates the sale of up to 7,000 units per year. If more units are required, another contract must be signed for the same number of units. TI solutions, in its eagerness to get new customers, has offered Harsd to sell this component for $ 42.50 per unit. Transportation costs are charged to the customer and have been estimated at $ 200 per shipment. Unfortunately, the company can only make up to 3,000 units a year. 

Suppose the company has calculated the costs of holding units in inventory at 20% per year. What should be the inventory policy for Harsd to follow? Justify your answer in terms of the cost difference between the alternatives and indicate the lot size, time between orders and total annual cost of the best option.