I need help Computing the following question with criteria for question 3. Ive computed the EOQ at 189 units per order and Total EOQ at 3386.38

Annual demand: 5,000 cases of cards

Assume BBE operates 365 days of the year

Standard deviation of daily demand is 7 cases

Case value (price): $200/case

Annual inventory carrying cost: 28%

Ordering cost/order: $100

In-transit inventory carrying cost: 18%

Transit time using motor carrier: 5 days

Transit time using air carrier: 2 days

Air carrier rate: $1.50 per cwt

Motor carrier rate: $0.80 per cwt

Unit weight: 50 lbs. per case

Consider that for each case of demand unmet BBE loses $200 (the value of the

case). Using, the motor carrier results in on average 13 cases excess and 3 cases

short in each order cycle. While the from air carrier's service contract you

anticipate that on average there will be on average 11 cases excess and 4 cases

short in each cycle.

a.

What is the EOQ when using the motor carrier

b.

What is the total cost (ordering, inventory carrying, excess and shortage

costs) using the motor carrier ?

c.

What is the EOQ when using the air carrier

d.

What is the total cost (ordering, inventory carrying, excess and shortage

costs) using the air carrier ?