3. Emu Inc is considering two truck services to make deliveries from its manufacturing plant to its central warehouse. Orange Transportation is cheaper, but also is slower and less reliable than Blue Transportation. The following information regarding the system and the transportation alternatives are available: Average demand Standard deviation of demand Order cost Product price Shipping quantity In-transit Inventory carrying cost In-stock probability during lead time Out-of-stock costs 80 units/day 12 units $150/order $50/unit As per EOQ 30% per year 20% per year 90% Unknown Selling days Average Transit Time (TT) Standard Deviation of TT Rate 360 days/year Orange Transportation Blue Transportation 7 days 1.8 days $11.45/unit 3 days 1.2 days $11.55/unit A reorder point approach is being used for inventory control at the warehouse. From the point of view of inventory and transportation related costs, which truck service should be selected?