Supply chain $-$ Inventory problem

Jensen Corp. sells three different products sourced from vendor ABC: Product A$,$ Product B$,$ and Product C$.$ The company needs to determine the best ordering quantities for these products to

minimize total inventory and transportation costs. The holding cost rate is the same for all products at $35\%.$ The table below provides the product characteristics. Transportation from Vendor ABC to the inbound warehouse for XYZ is made by intermodal transportation. The current rates from origin to destination are as follows:

$*$ LCL rate: $$(4)/($ f$)$t$3.$

$*20$ft$.$ container is $$2,700$ with a maximum volume of $1,150$ ft$3.$

$*40$ft container rate is $$4,900$ with a maximum volume of $2,350$ ft$3.$

You are asked to consider the following options in your analysis.

$*$ Independent shipments of each product using LCL based on the EOQ amount.

$*$ Joint reorder policies using dedicated containers $($all three items ordered and shipped at the same time in one or more containers$).$ It is noted that in this case, the ordering costs are reduced to $$1,000$ per joint order $($instead of the sum of the three at $$1,300).$

Analyze at least two reordering yearly frequencies, for example $3$ times per year and $6$ times per year. It is noted that the Q is not based on EOQ, instead is determined by Q $=($D$)/($F$),$ where F is the per year ordering frequency. For example, if the annual demand $($D$)$ is

$2,000$ and the per year ordering frequency is $4$ times per year, each order $($Q$)$ will be for $500$ units. Safety stock issues are ignored as LCL and container shipping have the same average lead time

and lead time variability, thus in all cases, the safety stock cost will remain unchanged. Besides the base analysis, perform a sensitivity analysis considering a change in the LCL rate of $-25\%$

and $+20\%.$ Include tables and graphs as needed.