The company ATAS is a producer of packaging. They have the following costs.

Storage costs: 1,650,000/year

Fixed costs: 8,000/year per truck

Variable costs: 100/trip

Every truck makes 150 trips per month

Period Orders Average stock

Jan-Feb 1,200 1,500

Mar-Apr 900 1,250

May-Jun 1,200 1,500

Jul-Aug 900 1,200

Sep-Oct 900 1,350

Nov-Dec 1,500 1,800

Total

A logistics operator makes the following offer:

Storage and pick up: 115 every two months.

Transport: 98/trip.

QUESTION:

1-Evaluate which is the best option for the company. Consider also a mixed alternative.