1. An industrial distributor considers two options for inbound shipping of a particular SKU. Each unit costs $50. Holding cost is estimated to be 20% per year. It costs the distributor $100 in administrative costs to place an order. Truckload (TL). With this shipping method, each order comes on a dedicated truck. Each order can be up to 1,000 units. The shipping cost is $400 per order to make the shipment. Less-than-truckload (LTL). With this shipping method, the carrier chooses whether to combine with other shipments. Each order can be any size and the shipping cost is $1 per unit. a. Evaluate the total cost of both methods if the average annual demand for this SKU is 15,000 units. b. Evaluate the total cost of both methods if the average annual demand for this SKU is 5,000 units. c. Find the level of demand below which LTL is cheaper, and above which TL is cheaper (hint: use the same spreadsheet as above and use GoalSeek or Solver, or just guess and check)