The weekly demand is $1000$ units with a standard deviation of $250$ units. The weight and cost per unit is $1\mathrm{.}5$lbs and $ $120$ respectively. The holding cost rate is $10\%$ and the TSL $=99\%($z$=2\mathrm{.}33).$ Assume $52$ weeks per year. Production lead time is $2$ weeks, standard deviation is $0\mathrm{.}5.$ Ordering costs are $$800$ per order. Shipping option $1)$ Air$/$truck: transit time $=(1,0\mathrm{.}5)$ and ordering quantity is $2$ weeks of demand. Rates are $500$lbs$+=$ $$142$cwt; $3,400$lbs$+$ $$145$cwt$.2)$ Container: transit time $=(4,1)$ and ordering quantity $=7,000$ units. The rate is $$3,500$ per container.