Question: 0.5 pts Question 20 Please note the numbers may change from one question to another. Flanger is an industrial distributor that sources from hundreds of

0.5 pts Question 20 Please note the numbers may change from one question to another. Flanger is an industrial distributor that sources from hundreds of suppliers. Flanger uses a third party transportation company to ship its products. The two modes of transportation available for inbound shipping are LTL (less than truckload) and TL (truckload). LTL shipping costs $1 per unit, whereas TL shipping costs $500 per truck. Each truck can carry up to 1,000 units. Flanger wants to decide the shipping mode (TL or LTL) based on annual demand of the products. The material cost per unit is $50 and Flanger uses a holding cost of 25%. Flanger incurs a fixed cost of $80 for each order placed with a supplier. The annual demand is 5000 units. Suppose Flanger uses LTL to ship 360 units of products each time, what is the annual transportation cost? Hint: The total annual cost includes three types of costs: annual holding cost, annual transportation cost and annual order placement cost (supplier). The total annual cost using LTL is QTL D - hd 1 - D+ -Ssupplier Qure 2 O $360 O $1111 $6944 O $1 $5000

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