Toyota and NISSAN carry spare parts for their dealers at a third party warehouse in Japon. Demand for Toyota spare parts is 200 units per month while demand for NISSAN parts is 240 per month. Each spare part costs $100 and both companies have a holding cost of 10 percent. Currently, each company uses a separate truck to ship these parts. Each truck has a fixed cost of $300. (20 points)

a) What is the annual ordering and holding cost for each company?

A 3rd party logistics provider has offered to combine shipments for each of the two companies on a single truck. This will increase the cost of each truck to $X.