The JAS Corporation has two plants located in Gary, IN and Little Rock, Arkansas that manufacture components A and B respectively for use at an assembly plant in Washington, DC.

Transit time from Gary and Little Rock to the plant in Washington is 9 days. Demand at the Washington 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). The holding cost for the assembly plant and in-transit inventory is $1/unit/ day and the freight cost for a truckload is $1500 from either component plant to Washington.

1. Calculate the total logistics cost of this plan.
2. Calculate the total logistics cost of a smaller truck which only holds 1375 units but costs $1200