1. We ship regular loads from Seattle to Detroit. Annual demand is normally distributed with a mean of 6000 and standard deviation of 1400. Use a holding rate of 25%, an order cost of $200 (for LTL), and an item cost of $190. Each item weighs 30lb and a volume of 10 cubic feet. Determine the average annual cost for each of the following three modes. Assume packing limitations are such that only 80% of available volume can be used. Also, use a service level of 95% a. Rail - assume a rail car has no weight restriction, but cubes out at the same as a 40-foot container. The leadtime is 11 days. Cost per rail car is $1.80/car/mile. b. Full truck The leadtime is 2.5 days. Cost is $2.30/mile. C. LTL - The leadtime is 4 days. Cost is $2.80 per unit. In this case, use the EOQ to determine the order quantity. 1. We ship regular loads from Seattle to Detroit. Annual demand is normally distributed with a mean of 6000 and standard deviation of 1400. Use a holding rate of 25%, an order cost of $200 (for LTL), and an item cost of $190. Each item weighs 30lb and a volume of 10 cubic feet. Determine the average annual cost for each of the following three modes. Assume packing limitations are such that only 80% of available volume can be used. Also, use a service level of 95% a. Rail - assume a rail car has no weight restriction, but cubes out at the same as a 40-foot container. The leadtime is 11 days. Cost per rail car is $1.80/car/mile. b. Full truck The leadtime is 2.5 days. Cost is $2.30/mile. C. LTL - The leadtime is 4 days. Cost is $2.80 per unit. In this case, use the EOQ to determine the order quantity