If inventories are aggregated at Oshkosh, orders will be shipped using FedEx, which charges $$7\mathrm{.}25+0\mathrm{.}77$x per shipment, where x is the quantity shipped in pounds. The factory requires a one$-$week lead time to replenish finished$-$goods inventories at the Oshkosh warehouse. An average customer order is for $1$ unit of Onion Cola and $10$ units of Garlic Soda.

Can your team help us evaluate these options?

What is the total annual cost of the current system?