Use the below information to answer questionsSupplier Other Information Charges $10 per unit Order Cost is $25 Avg Processing time is 2 days Avg daily demand is 200 SD of processing time is 1 day SD of daily demand is 20 Carrier Inventory carry cost is 30% Avg transit time is 14 days In-transit carrying cost is 13% SD of transit time is 3 days Operating days is 360 Charges $0.75 per unit Service level= 95%Required:a. What is the Annual Transit Cost?1. $32,000.00 (31,000 - 33,000)2. $54,000.00 (53,000 - 55,000)3. $27,000.00 (26,000 - 28,000)4. $150.00 (100 - 200)b. What is the In-Transit Inventory Cost?1. $3,500.00 (3,400 - 3,600)2. $4,508.00 (4,400 - 4,600)3. $3,913.00 (3,800 - 4,000)4. $2,917.00 (2,800 - 3,100)
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