A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the following information. Audubon Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 340 days per year. Details for the annual part and logistics cost for Audubon and LaPlaya for an annual demand of 1,000,000 is given below:

Total Annual Logistics Cost (TALC) Analysis Audubon LaPlaya
C = Wholesale or retail price per unit considering price breaks $11.80 $10.85
Tc = country import or export tariff cost per unit, if any $- $0.46
Tm = cost per unit to ship by air, ship, truck and/or rail $0.90 $1.25
Sub Total (C + Tc + Tm) $12.70 $12.56
D = Forecast annual demand in units = 1,000,000 1,000,000
Q = Typical order quantity in units= 50,000 100,000
Average Number orders per year (D/Q) = 20 10
Co = cost to place one order = $155.00 $195.00
Ch = cost to store one unit in inventory for one year = $1.45 $1.10
L = lead time in days = 45 100
Yd = days per year = 340 340
d = average daily demand in units (D/Yd) = 2,941.18 2,941.18
(C + Tc + Tm)*D $12,700,000 $12,560,000
Co(D/Q) $3,100 $1,950
[Q/2 + d*L]Ch $228,162 $378,529
TALC = $12,931,262 $12,940,479

Look at the information given. What supplier and order quantity do you recommend based on total costs?