WoodWorks, a construction materials distributor, has a large warehouse and will use a trucking company for inbound shipping. Shipping costs $800 per truck plus $200 per pickup. A truck can carry up to 2,000 units. WoodWorks incurs a fixed cost of $400 for each order placed with a supplier. Each unit costs $600, and WoodWorks uses a holding cost of 25 percent. Assume that product from each supplier has an annual demand of 3,000 units. (a) If a separate truck is used for each supplier, a. What is the optimal order size? b. What is the time between orders? c. What is the annual cost? (b) If two suppliers are grouped together per truck, a. What is the optimal order size? b. What is the time between orders? c. What is the annual cost?

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