A company sources from hundreds of suppliers and is considering the aggregation of inbound shipments to lower costs. The company decides to aggregate three suppliers per truck. The common truckload shipping order cost, S = $500 per truck, along with supplier-specific order costs, s₁ = $110, s₂ = $120, s₃ = $130 per pickup. Average annual demand from each supplier is, demand per product, D₁ = 10,000, D₂ = 11,000, D₃=12,000 units. Each unit cost per product is, C₁ = $50, C₂ = $60, C₂ = $70, and the company incurs a holding cost of 20 percent, h = 0.2

*** What is the optimal order frequency, n, if the company decides to aggregate three suppliers per truck?

	a.	14.91
	b.	9.75
	c.	12.24
	d.	15.25