Note: Please show your work! Only partial credits will be given without middle steps. Problem 1. (Chapter 3: The Logistics/Supply Chain Product) Davis Steel Distributors is planning to set up an additional warehouse in its distribution network. Analysis of item-sales data for its other warehouses shows that 30 percent of the items represent 75 percent of the sales volume. The company also has an inventory policy that varies with the items in the warehouse. That is, the first 20 percent of the items are the A items and are to be stocked with an inventory turnover ratio of 10. The next 30 percent of the items, or B items, are to have a turnover ratio of 8. The remaining C items are to have a turnover ratio of 6. There are to be 20 products held in the warehouse with sales on the warehouse forecasted to be $3 million annually. What dollar value of average inventory would you estimate for the warehouse? (Hint: This problem is similar to the class example of 80-20 curve". It is most convenient for you to work on this in Excel. Your final completed work should look like the excel on Module2 Ch03Slide 3-8. You can simply turn in your excel file.) Problem 2. (Chapter 7: Transport Decisions). The Wagner Company supplies electric motors to Electronic Distributors, Inc. on a delivered-price basis. Wagner has the responsibility for providing transportation. The traffic manager has three transportation service choices for delivery-rail, piggyback, and truck. He has compiled the following information: Transport Mode Transit Time, Days Rate, $/unit Shipment Size, Units Rail 16 24.00 10,000 Piggyback 10 40.00 7,000 Truck 6 80.00 5,000 Electronic Distributors purchases 50,000 units per year at a delivered contract price of $500 per unit. Inventory-carrying cost for both companies is 25 percent per year. Which mode of transportation should Wagner select? (hint: similar to the mode/service selection example in class (see Module2 Ch07Part1.pdf or Module 2 Ch07 Part 1 Slide 1-7 Video) except that C=500 at the warehouse and C=500-R for in-transit and plant inventory because $500 is the delivered price.)