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You manage the shipping of item #SE 0 5 2 from your supplier. The shipments for this item are delivered to the nearest port, and

You manage the shipping of item #SE052 from your supplier. The shipments for this item are delivered to the nearest port, and you have to transport them to the distribution center. You have two options, full truck load (FTL) and less than truck load (LTL).
Your company needs 5000 units of #SE052 per year and it is purchased at a price of $36 per unit. Each order costs $91. Your company uses an annual holding charge of 10.0%, a cycle service level of 90% and 365 days per year for planning purposes.
The full truck load (FTL) option costs $1300 per load. It takes 4 days to deliver and each truck can carry up to 1000 items.
The less than truck (LTL) load option costs $2.9 per item. It takes 6 days to deliver.
You have three options,
OPTION A: to use the FTL option and deliver full truck loads,
OPTION B: to use the FTL option and deliver the economic order quantity
OPTION C: to use LTL option and deliver the economic order quantity.
Your company includes the cost of transportation as an item cost unless otherwise specified. This decision impacts all costs such as purchase, ordering and inventory costs. As an example, the cost per item of #SE052 in the Full truckload is $1300/1000items + $36/item = $37.3/item.
(Option A) Full Truck Load (FTL)
What is the sum of annual pipeline and cycle inventory, ordering, and purchase costs for option A? Please provide your answers rounded to the closest dollar.
Remember to include the transportation costs as an item cost.

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