An EU customer orders DRAM chips from Samsung in Korea. One…

An EU customer orders DRAM chips from Samsung in Korea. One DRAM weighs 0.1 lbs and costs $1,000.  The customer orders 1,000 lbs of DRAM chips annually and has the option to ship via Air at a shipping cost of $10/lb or by ocean at a shipping cost of $0.02/lb. In either case, the customer plans for weekly shipments and pays for transport. The customer’s inventory holding cost % is 20%. Transit times are 5 days via Air and 20 days via Ocean Answer the following questions: Question: What is the annual transportation expense via Air? [Airtransport] Question: What is the annual transportation expense via Ocean? [Oceantransport] Question: What is the customer’s cycle inventory investment in DRAM using Air shipments? [Aircycle] Question: What is the customer’s cycle inventory investment in DRAM using Ocean shipments? [Oceancycle] Question: Which transport option should the customer choose? [transportoption] Question: What is the total cost associated with that transport option? [totalcost]