You are a Buyer$/$Planner$.$ You plan $4,000,000$ products per year and you earn $$80,000$ including benefits. Your orders are placed via EDI and the cost to place an order for each item is $1-$cent$/$unit$.$ A company in China makes the product in quantities of $10,000$ for $$20$ each. The cost is comprised of $$18\mathrm{.}50$ for raw material, $$0\mathrm{.}50$ for packaging, $$0\mathrm{.}49$ for labor, and $$0\mathrm{.}51$ for factory overhead. After production, the product is stored in a factory warehouse in China for $45$ days with an annual carrying cost of $25-$percent. The product is shipped to the port in China via full truck load. The truck costs $$100$ and $10,000$ items are on truck. The product is on the truck for $1-$day and the carrying cost is $25-$percent. The product is then loaded onto a boat and shipped to the US port at a cost of $3$ cents per unit. The product is stored in inventory on the boat for $42$ days at an annual carrying cost of $25-$percent. In the US$,$ the product is then shipped to a RDC $($Regional Distribution Center$)$ via full truck load at a cost of $5$ cents$/$unit$.$ The terms are FOB Shipping Point which means ownership transfers to the RDC when it leaves the port. The product is stored in a RDC and shipped to stores over $20$ days; the annual carrying cost to store product in the US is $30-$percent. $500$ units are moved to a retail store in less than truck load quantities at the cost of $8$ cents$/$unit$.$ Ownership is transferred to the store as the inventory leaves the RDC$,$ therefore the inventory is on the books of the store while in transit. Product is placed on shelf by the truck driver and sold at a gradual rate over $6-$day from the time it leaves the RDC at $30-$percent annual carrying cost. The cost of placing the product on the shelf is covered in the shipping cost.