2. A company would like to calculate a cost-to-cost trade- off analysis for the following scenario:

Cost to ship by rail = $0.05 per unit per kilometer shipped

Cost to ship by truck = $0.085 per unit per kilometer shipped

Number of units to be shipped = 150,000

Cost of delay due to slower shipping time if rail is used = $10,000

Provide a cost-to-cost trade-off calculation for the rail versus-truck alternative?

5. Currently, a company has 50,000 units of safety stock for a product located in three warehouses. The company is con templating expanding to nine warehouses. The company believes that this increased safety stock inventory investment with the new locations will result in an additional $600,000 in revenue due to improved customer service. Assuming that each unit in safety stock inventory costs $5, is the expansion to nine warehouses a potentially good idea?