• • S11.16 A company with a plant in Basel can be served by both rail and truck at a cost of €250 and €1,500 per load, respectively.

The transit time for the train is 15 days while that for the truck is 5 days.

a) If the daily cost of transit inventory is €100, which transportation mode is more economical attractive?

b) What will be the costs involved if the daily inventory carrying cost is €50?

c) Identify the related principles need to be considered when designing a transportation system.