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5. Flanger is an industrial distributor that sources from hundreds of suppliers. The two modes of transportation available for inbound shipping are LTL (less than

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5. Flanger is an industrial distributor that sources from hundreds of suppliers. The two modes of transportation available for inbound shipping are LTL (less than truckload) and TL (truck- load). LTL shipping costs Sl per unit, whereas TL shipping costs $500 per truck. Each truck can carry up to 1.000 units. Flanger wants a rule assigning products to shipping mode (TL or LTL) based on annual demand. Each unit costs $50, and Flanger uses a holding cost of 22 percent. Flanger incurs a fixed cost of $150 for each order placed with a supplier a. Determine a threshold for annual demand above which TL is preferred and below which LTL is preferred. b. How does the threshold change (relative to part (a)] if unit cost is $150 (instead of S50) with all other data unchanged? Which mode becomes preferable as unit cost grows? C. How does the threshold change [relative to part (a) if the LTL cost comes down to $0.8 per unit (instead of $1 per unit)

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