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3. What is the total annual logistics cost associated with the current practice of shipping product by rail to Butte and then by commercial

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3. What is the total annual logistics cost associated with the current practice of shipping product by rail to Butte and then by commercial trucks to retail outlets? In solving this question, assume that annual costs consist of the following components: [1] Safety stock. [2] Average cycle stock. [3] [4] In-transit inventory between Kentucky and Montana and stores. Annual order processing costs. 55 [5] Transportation from Kentucky to Montana by rail. [6] Transportation from Montana to retail stores by truck.

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