A pharmaceutical company has three plants located in Dhaka. In order to reduce the overall cost of medicines within supply chain, company has appointed a supply chain analyst (SCA). The SCA decided to reduce the cost in all possible aspects. Initially she decided to look at the inventory cost of procurement chemical substances. At present company procures 50 types of chemical substances from different countries. She took a particular substance to experiment her plan. The monthly demand of that substance is 30 Tons. The cost of each order placement (i.e. documentation, custom clearance, bank charge of payment) is 10,000 BDT. At present all procured items are stored in a warehouse, which is temperature and humidity controlled to ensure the quality of the substances. The capacity of the warehouse is to store 500 Tons of materials. Each month it costs around 5,00,000 BDT to maintain the warehouse including facility, electricity and labor cost. Hence, for each ton of item to store 1 month it costs 1,000 BDT. storage cost of is 200BDT for each ton each day. Currently, company procures the chemical substance from Indian supplier having 30 ton delivered at a time each month. Based on the available information 1. What will be the inventory cost of current procurement policy of ordering 30 ton in a single delivery each month? 2. The SCA decided to calculate the EOQ. What will be the EOQ, and by ordering the EOQ amount for each delivery how much company can save each month for that substance? Another strategy for SCA to look at the distribution cost of medicine. To ensure supply in Rajshahi Division, at present, there are 3 large warehouses located in Pabna, Bogura and Rajshahi. From these warehouses medicine are delivered to nearby other districts. Due to change of market demand, one particular medicine got stacked in the warehouse. So, company decided to not to produce any item for next month. The transportation cost for deliver each kg, item stored in the warehouse and demand of each nearby districts are shown in following table. 3. Using transportation model, the SCA decided to identify how the medicine need to be distributed so that transportation cost become minimum. What could be a sample distribution plan generated by the SCA