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A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year.

Certified Supplier	Order Size (Q)		Price per Unit (P)	Oversight Cost per Unit (O)	Transport Cost per Unit (Ct)	Order Cost (Co)	Cost to Store One Unit One Year (Ch)	Order Lead Time in Days (L)
New Albany Mfg.	40,000		$18.31	$0.00	$1.67	$275	$2.15	60
LaPlaya Mfg.	80,000		$17.30	$0.11	$1.98	$330	$1.95	73

1. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 560,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar.

   Order quantity:	40,000 units	80,000 units
   Total procurement cost:	$	$
   Total management oversight cost:	$	$
   Total annual transportation cost:	$	$
   Annual order cost:	$	$
   Annual holding cost:	$	$
   Average annual pipeline invenory cost:	$	$
   Total supply chain costs:	$	$

2. What supplier and order quantity do you recommend based on total costs?

   Based on total cost, the company should choose -Select-New Albany Mfg.LaPlaya Mfg.Item 15 with corresponding order quantity of brake pads.

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