To: You Cc: Onion Team From: Bob Subject: Onion Cola

We currently purchase 120,000 bags of onions each year for Onion Cola at a price of $100 per bag (a bag is ten pounds). We have historically purchased in lots of 3000 bags. Transit time and capacity vary as indicated in the table. The safety inventory that we require is 30% of lead time demand and the holding cost for a bag is 15% of cost.

The Big Boss isnt happy with our transportation costs, so I did some research into our options.

Carrier	Quantity Shipped (cwt)	Quantity shipped (bags)	Shipping cost ($/cwt)	Transit time (days)
Mashburn Rail	200+	2000+	$2.10	5
Sylvia Express	100+	1000+	$2.35	3
Anita Enterprises	250+	2500+	$1.35	3
Smith Trucking	250+	2500+	$1.00	3

Which of these will be least expensive if we purchase 120,000 bags of onions each year?

Group of answer choices

Mashburn Rail

Anita Enterprises

Sylvia Express

Smith Trucking