ARE Aabend AaBbCcDc AaBbccde Aalbo Heading 2 ADVANCED LOGISTICS, LSM 340 HOMEWORK 11 due on April 9, 2020 Transportation Costs 1. You are supply chain manager for a company Yard-Depot located in Huntsville. You found a drywall sheetrock manufacturing company in South Nevada and signed a deal to buy sheetrock from this company, Nevadaco, Monthly demand for sheetrock is 90,000 packs per month, on an average, with a standard deviation of 10,000 packs. A trucking company, Nhaul will charge $4,000 per truckload (with a capacity of 15,000 packs) to transport drywall from Nevada to Huntsville. The average transit time for a truck haul is 6 days with a standard deviation of 2 days. You also contact a shipper, Railagent, that proposes to move drywall from Nevada to Huntsville and charges $3,500 per railwagon that has a capacity of 30,000 packs of drywall. However, its transit time is 10 days with a standard deviation of 4 days. Another shipper, Multimoder, can also move this product by using a combination of truck and railroad. Its shipment is 30,000 packs and transit time is 8 days with a standard deviation of 3 days. And Multimoder will charge $5,000 per shipment. You purchase drywall at S60 per pack and your annual inventory holding cost is 20% a. Compute monthly transportation cost, inventory holding cost and total supply chain costs for the above three options and tabulate them b. Which option will you select and why. What other criteria will you consider in your decision-making? Pages: 1 of Words of 244