The FLEX Corporation has two plants located in Spokane Washington and Houston,

Texas that manufacture components A and $B$ respectively for use at an assembly plant

in Syracuse, NY$.$

Transit time from Spokane and Houston to the plant in Syracuse is $9$ days. Demand at

the Syracuse plant is $250$ units of component A and $125$ units of component B each

day.

The plants ship in full truckloads, each truck has a maximum capacity of $1750$

components $($both components are of similar size$).$ Holding cost for the assembly plant

and in$-$transit inventory is $$0\mathrm{.}50/$unit$/$ day and freight cost for a truckload is $$1500$ from

either component plant to Syracuse.

A$.$ Calculate the total logistics cost of this plan.

B$.$ Calculate the total logistics cost of a smaller truck which only holds $1375$ units

but costs $$1200$

C$.$ What is the ideal order size $($EOQ$)$ for each truck price for each unit? In other

words what is the idea order size for each cell given holding cost $c=$$$0\mathrm{.}50$ per

unit per day: