Use the following information to determine which supplier for steering wheels is more cost$-$effective using total cost analysis. Late delivery of the component results in $50\%$ lost sales and $50\%$ back orders of finished goods.

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Table $1$

Order lot size $300$

Annual Requirements $3600$ units

Weight per steering wheel $20$ pounds

Order processing cost $$125$

Inventory carrying rate $20\%$ per year

Cost of working capital $10\%$ per year

Profit margin $20\%$

Price of finished golf cart $$5000$

Back order cost $$15$ per unit

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Table $2$

Unit Price Supplier A Supplier B

$1$ to $999$ units$/$order $$50$ $$52$

$1000$ to $2,999$ units$/$order $$48$ $$50$

Tooling cost $$1000$ $$1000$

Terms $2/10$ net $301/10,$ net $30$

Distance $120$ miles $100$ miles

Supplier Quality Rating $($defects$)3\%2\%$

Supplier Delivery Rating $($late$)1\%2\%$

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Here are the freight rates for

Truckload $($TL $>=40,000$ lbs$)$: $$0\mathrm{.}90$ per ton$-$mile

Truckload Less$-$than$-$truckload $($LTL$)$: $$1\mathrm{.}10$ per ton$-$mile

Note: per ton$-$mile $=2000$ lbs$.$ per mile; number of days per year $=365$