Problem V$\mathrm{.}4.$a

$2/2$ puntos $($calificados$)$

Suppose we have two ways to source a product. One way is from the local supplier, while a second way is from a distant supplier.

The terms and parameters for each source are as given in following table:

Local supplier Distant supplier

Cost per unit, $$1\mathrm{.}15$ $$1\mathrm{.}00$

Lead time $($no uncertainty$),3$ weeks $12$ weeks

Transportation cost per unit, $$0\mathrm{.}10$ $$0\mathrm{.}12$

Suppose demand for the component is ; $.($Assume normally distributed demand$)$

Suppose we have a per unit holding cost of $.$ This applies to all inventory in the system.

Compute the total landed cost per unit $($equal to the procurement cost plus transportation cost plus holding cost for pipeline stock$)$ for each source. Round to two decimal places.