Proposed Mode Mix Current Mode Mix 10 16 Average transit time (days) Std. deviation of transit time (days) Demand per day (units) 2000 2000 95.0% 86.12% Service level $75 $75 Net cost per unit 30% 30% Inventory carrying cost Price per unit Cost of capital * early deliveries have the same impact on safety stocks as late deliveries $125 $125 16% 16% 7. The proposed mode mix has a freight expense premium of 18% based on the total inventory value of the difference in total inventory (demand inventory plus safety stock inventory) between the two mode alternatives. What is the total net cash flow savings from using the proposed mode mix? a. $170,640.00 b. $147,900.00 c. $146,880.00 d. none of the above Proposed Mode Mix Current Mode Mix 10 16 Average transit time (days) Std. deviation of transit time (days) Demand per day (units) 2000 2000 95.0% 86.12% Service level $75 $75 Net cost per unit 30% 30% Inventory carrying cost Price per unit Cost of capital * early deliveries have the same impact on safety stocks as late deliveries $125 $125 16% 16% 7. The proposed mode mix has a freight expense premium of 18% based on the total inventory value of the difference in total inventory (demand inventory plus safety stock inventory) between the two mode alternatives. What is the total net cash flow savings from using the proposed mode mix? a. $170,640.00 b. $147,900.00 c. $146,880.00 d. none of the above