1. The RescueMe Extrication Tool Company manufactures and sells various types of tools for use in outfitting fire department heavy rescue trucks. Finished goods are to be shipped from a plant inventory to a warehouse inventory some distance away. Mr. Chris Cutter, the Logistics Manager, must determine which mode of transportation to use for one of its best-selling products. Chris believes the expected volume to be shipped in a year is 1.5 million pounds. The product is worth $15 per pound and the inventory carrying cost is 30% on an annual basis. His assistant, Bauer Supply Chain graduate Pete Pry, has calculated additional data below:

Transport Mode	Rate $/pound	Transit Time - days	Shipment Size - pounds
Train	0.11	25	100,000
Truck	0.20	13	40,000
Plane	0.88	1	16,000

What are the costs for each mode for this product? (20 points)

Transportation Cost
Train
Truck
Plane
In-transit inventory cost
Train
Truck
Plane
Plant inventory costs
Train
Truck
Plane
Warehouse inventory costs
Train
Truck
Plane