How did they calculate the annual safety stock cost in this example? For TL annual safety stock shows $13,017. How did they calculate this?

Solution: Mode Choice c = $ 20 per lb h = 20% per year TC(Q) = CD Cp=20(0.20)= 4 $/yr + ce + ko, + LD HD = 3000 lbs/day 2 Op = 750 Ibs/day K = 1.64 CSL TL IM Lead Time (Hy) 3 6 days Std Dev Lead Time (o,) MDL = MUD 0.5 2 days Cost (C)D 1800 1400 $/load To load O DL = VM, Op + ( Up ) o ? Transit time x demand =(3) x (3000 )= TL IM 750000/ Average Demand over Lead Time (HDL) 9000/ 18000 Std Dev Demand over Lead Time (ODL) 1984 6275 Select TL for this lane. = Sqrt((3 trapsH X/ 750 standard per day + ( 3010 chaman AZ) 0.52))TL saves > $56k /yr, but load per year TL 3700 per dayy Zto do 25 0 01 /4 100 IM note - transport costs are Capacity (Q) 40000 40000 higher but are trumped Number of loads/year (N = D/Q) 18.75 18.75 by safety stock and Lpeyr 19.75 x Cost 1800 of TL Annual Ordering Cost / $33,750 $26,250' pipeline inventory. e 4 4x (4080 0) Annual Cycle Stock Cost $80,000 -$80,000 Annual Safety Stock Cost $13,017 $41, 164 Does the "weigh-out" Annual Pipeline Inventory Cost $36 000 $72,000 policy make sense? Total Annual Logistics Cost $162,767 $219,414 CTL.SC1x - Supply Chain and Logistics Fundamentals Lesson: Lead Time Variability & Mode Selection sart ( 12x 750010 x 1800) / ( 20* 20 )) 18.75 X 3 - 54. 75 BO Q 23980 750000 / 25980 X 1805