Rail 2000 0.

65 /unit Annual demand

Northern trucking 1000 0.75 /unit No.of days in a year
Golden freights 500 Rail transit time
2500 Truck transit time
3000 h
4000 Safety stock

Cyclic stock ICC In transit cost Total Inventory cost

Rail 30000 29589.04 49315.1 108904.1
Northern trucking 15000 19726.03 29589.04 64315.1
Golden (500 units) 7500 19726.03 29589.04 56815.1
Golden (2500 units) 37500 19726.03 29589.04 86815.1
Golden (3000 units) 45000 19726.03 29589.04 94315.1
Golden (4000 units)
 120000 Avg demand 328.8 /day
365 Order processing time 1 day
5 days Cost of motor 120 /motor
3 days
0.25
0.5 of the average demand during lead time

Transporation cost Total cost

78000 186904.1 Cost/unit
90000 154315.1 500 1500 0.8
96000 152815.1 least Golden freight slabs 1500 2500 0.6
86400 173215.1 2500 4000 0.4
80000 174315.1