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Duck Company built two Distribution Centers (DC) to minimize transportation costs but it hasn't been that way. They currently use truck to transport their product

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Duck Company built two Distribution Centers (DC) to minimize transportation costs but it hasn't been that way. They currently use "truck" to transport their product from the distribution center to the store. They have the hypothesis that they have been using the wrong transportation mode (Truck). The most important store of the Company is located in Dallas and receives the product from the DC " A ". The Supply Chain is shown in the picture below. The daily demand for the product is 290 units, the cost of the product at the DC is $55 and they considered a 22% per unit inventory value per year. Due to the high service level, the store maintains 7 days of safety stock. For the analysis, consider 365 days per year. Enter the information from above onto the template and answer the following questions by filling in the 2 tables ( 30 points) and the shaded boxes: a) (2.5 points) What is the total cost of the current system? b) (2.5 points) Do they need to change transportation mode if the store wants to receive the product from DC " A ". Yes/No, What is the total cost of this method? c) (2.5 points) If Abel Company wants to use a different Distribution Center. What would be the preferred total cost and transportation mode in this case? d) (2.5points) Which distribution center should they use if they want to use Air as the transportation mode? a) Wast is the total coat of the correst intem? cost= Change transportation mode: Cost = cf If Abel Cempany wants to use a different DC. What would be the weferred total cest in this case? (S points) Cont : Mode * d) Which distributien cemter should they vse if they want to uie Alr as the transportation mode

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