BCSF Inc. is a Seafood company based in Burnaby, British Columbia, Canada, and specialized in a conditioned and canned table ready seafood products. The company was founded in the late seventy by Mr. Shellfish as a local West Coast family business. Today the company owns a manufacturing plant in Burnaby and two distribution centers; one in Vancouver and another one located in the Calgary urban region. Over the years, Mr. Shellfish built stable business relationships with the major food retail chains in Canada.

The company produces seafood cans, which are packaged in cardboard boxes measuring about 30.48 cm x 30.861 cm x 60.96 cm (approximate volume of each box is 57,341.61 cm3 or 2.025 ft3 ). Each box contains 200 cans, with an average production cost of $200/box. The company profit margin on each 3 box sold is 65% of the production cost. BCSF pays a 15% penalty of the sale price (production plus profit) for any portion of unfulfilled orders. The company owns a fleet of trucks for transportation between its warehouses and third-party distribution centers. Table 1 provides the following information: Average transportation time move the product between two points in the supply chain Lead time for orders Standard deviation of the lead time . The average transportation costs by truck is $0.15/box/hour. The ordering cost from any of the warehouses to the plant is on average $1,500/order. However, the factory production setup process usually cost more than $250,000 to completely shut down the factory for more than a week and restart it again. The annual holding cost at any of the two warehouses is estimated at $200/box. The factory requires about five business days lead time to change production schedule. The company operates 250 days/year with a maximum production capacity of about 2000 boxes/day at the end of 2020.