Emu Inc is considering two truck services to make deliveries from its manufacturing plant to its central warehouse. Orange Transportation is cheaper, but also is slower and less reliable than Blue Transportation. The following information regarding the system and the transportation alternatives are available:

Parameter	Value
Average demand	80/day
Standard deviation of demand	12 units
Order cost	$150/order
Product price	$50/unit
Shipping quantity	As per EOQ
In-transit inventory carrying rate	30%
On-site inventory carrying rate	20%
In-stock probability during lead time	90%
Out-of-stock costs	Unknown
Selling days	360 days/year

	Orange Transportation	Blue Transportation
Average transit time	7 days	3 days
Standard deviation of transit time	1.8 days	1.2 days
Rate	$11.45/unit	$11.55/unit

Currently, a reorder point approach is being used for inventory control at the warehouse. From the point of view of inventory costs and transportation costs, which truck service should be selected?