a- c this is one whole question

5. (15 points] A hardware manufacturer signs a contract with Home Depot to provide wood screws. The plant nursery has 3 supply locations. They need to deliver to 12 Home Depot stores. The demand at each Home Depot store is 100,000 boxes. The trucks can delivery up to 20,000 boxes and cost $1,000 per load plus $250 per delivery. The cost of holding one box in inventory for a year is $1.00. The supply chain manager of the hardware manufacturer is considering whether to use direct shipping from the supplier locations to retail stores (full truck loads in each shipment) or setting up milk runs from supplier to retail stores (without a distribution center). In each milk run, a truck may deliver to 2,3, or 4 Home depot stores. (Hint: See the class example and use the Excel template). What is the total cost inventory holding + truck cost) for direct shipping option? b. What is the minimum total cost for milk-run using full trucks? Calculate the total cost for a truck delivering to 2,3, or 4 locations. What is the suggested shipping option? if the demand increases to 150,000 boxes per store, would your option change? Why or why not? a. c. 5. (15 points] A hardware manufacturer signs a contract with Home Depot to provide wood screws. The plant nursery has 3 supply locations. They need to deliver to 12 Home Depot stores. The demand at each Home Depot store is 100,000 boxes. The trucks can delivery up to 20,000 boxes and cost $1,000 per load plus $250 per delivery. The cost of holding one box in inventory for a year is $1.00. The supply chain manager of the hardware manufacturer is considering whether to use direct shipping from the supplier locations to retail stores (full truck loads in each shipment) or setting up milk runs from supplier to retail stores (without a distribution center). In each milk run, a truck may deliver to 2,3, or 4 Home depot stores. (Hint: See the class example and use the Excel template). What is the total cost inventory holding + truck cost) for direct shipping option? b. What is the minimum total cost for milk-run using full trucks? Calculate the total cost for a truck delivering to 2,3, or 4 locations. What is the suggested shipping option? if the demand increases to 150,000 boxes per store, would your option change? Why or why not? a. c