ProCannons Donuts: An alum of BSU, Donna Smith, knew the donutsbaked by ProCannons donuts would sell like wildfire in the citywhere She was the new CEO of a local supermarket. They had 20stores spaced out in the City of Farside Ohio, 200 miles away. Thestores were on average 10 miles apart from the city center. Donnasuggested that it would be easy to get the donuts to her stores;just buy a fleet of the Ram Sprinter vans at $50K each and havethem deliver the needed 1000 lbs. of donuts a day each store wouldneed. It would be all highway driving. You wondered if that wasthat the most economical logistics system to use for the long term.You did some research and found that instead of a fleet of Sprintervans maybe a day hauler than cost $100K, and can haul 20,000 lbs.could take the donuts to a warehouse space where you coulddistribute each stores’ shipment to just two sprinters that wentfrom the warehouse and back 10 times each day. Everyone on yourlogistics team makes $50,000 a year. You use a 250 day workingyear. The Day hauler truck must be back at the bakery at the end ofthe day so it cannot deliver to any of the stores there in Farside.Your company uses a 5 year cost payment scheme for rolling stockand 20 years for buildings. The Warehouse you would have to buywith your day hauler scheme would cost $5,000,000, and you wouldneed 4 people to unload and load the trucks. The Per mile costshighway for the Sprinter would be .35 ( for the fleet of Sprintersgoing to each store) and .45 for in-town from the warehouse; theDay hauler per mile cost is 1.65. No vehicle would be allowed todrive more than 400 miles in a day. What is the total daily cost?Which option is the best economically? What are two differentpieces of information that could change, or might be too simplisticin this scenario.