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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

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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 suppller 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 1,050 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 rellable engine suppliers and you need to decide which to use The following data have been collected: Note: Assume that half of the lot size is in inventory, on average (1,050/2=525 units). Two qualified suppllers have submitted the following quotations: Your assistant has obtained the following freight rates from your carrier: Note: P er ton-mile =2.000 pound per mile. Note: Per ton-mile =2,000 pound per mile. 0.1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.) 0.2. Which supplier would you select? Supplier 2 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 intermediote colculations. Round "Required lot size for truckload" and finol 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 fot all 8.3 purchase orders based on the lot size needed for a full truckload

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