$6.$ Use Scenario $14\mathrm{.}1$ to determine the in$-$transit inventory cost of the Mashburn Rail option if the Onion Shack purchases $240,000$ bags of Vidalia onions each year.

A$)$ $$3287\mathrm{.}67$

B$)$ $$2604\mathrm{.}67$

C$)$ $$1972\mathrm{.}60$

D$)$ $$1864\mathrm{.}60$

Problems from Scenario $14\mathrm{.}1-$ Vidalia Onions

When Vidalia onions are ready, the entire $13$ county $($plus parts of seven other counties$)$ area in

Georgia where they are grown is devoted to the harvest, packaging and shipping of this delicacy.

The Onion Shack currently purchases $120,000$ bags of onions each year at a price of $$100$ per

bag $($a bag is ten pounds$).$ Onion Shack has historically purchased in lots of $3000$ bags. Transit

time and capacity vary as indicated in the table. The safety inventory that Onion Shack requires

is $30\%$ of lead time demand and the holding cost for a bag is $15\%$ of cost$.$