Current Mode Mix Proposed Mode Mix 10 Average transit time (days) 16 Std. deviation of transit time (days) Demand per day (units) 2000 Service level 86.12% Net cost per unit $75 Inventory carrying cost 30% Price per unit $125 Cost of capital 16% * early deliveries have the same impact on safety stocks as late deliveries 2000 95.0% $75 30% $125 16% 6. The Tould used to calculate w (standard deviation of transit time). Calculate the safety stock inventory carrying cost reduction by using the proposed mode. Now calculate the demand (cycle stock) inventory carrying cost reduction by using the proposed mode. Combining the safety stock inventory cost reduction with the demand inventory carrying cost reduction results in a total annual inventory carrying cost dollar reduction of: a. $443,700.00 b. $367,200.00 c. $426,600.00 d. none of the above