Mohindra India Ltd is manufacturing printers to supply

European markets. The company offers a type of printer.

The printer cost is $400 per unit. If the firm uses air
mode to transport, it can fly in smaller lots of 100 units,
while shipping via sea requires minimum size of 800
units. The demand in Europe is normal 100 units per
week. Air mode needs 1 week for transportation and
clearance whereas sea takes 5 weeks for that. Freight
cost by air is $7.2 per unit while sea will be $1.8 per unit.
The annual inventory-carrying cost for the printer is 30%
of the cost of the item. The firm wants to decide on the
optimum mode of transport.