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i must select two options CHOOSE THE LOWEST COST MODE AND LOWEST COST TOTAL ANSWERS BELOW (Example: Truck and $5,148,493.15) IE. CHECK TWO ANSWERS BELOW

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CHOOSE THE LOWEST COST MODE AND LOWEST COST TOTAL ANSWERS BELOW (Example: Truck and $5,148,493.15) IE. CHECK TWO ANSWERS BELOW Transport Transit Rate Mode time, days $/unit Rail 16 Piggyback 10 Truck 4 shipment size units $25.00 10,000 $44.00 7,000 $88.00 5,000 Electronic Distributor purchases 50,000 units per year at a cost of of $500 per unit. Inventory carrying cost for both companies is 25% per year. Which mode of transportation should Wagner select? BE CAREFUL THIS PROBLEM IS NOT EXACTLY LIKE THE PRACTICE PROBLEM ! Transportation cost =RxD In-transit inventory = (ICDT)/365 Plant inventory = (ICQ)/2 Warehouse inventory = (IC'Q)/2 $3,284,732.88 a. b. Piggyback Truck Oc. d. $2,805,222.60 e. $5,148,493.15 Rail

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