1. What are the various alternatives available to Linda? Make a cost comparison for all available options....
Question:
1. What are the various alternatives available to Linda? Make a cost comparison for all available options.
ABC Footwear Limited is a leading manufacturer and bulk exporter of leather shoes. The company procures its leather from three suppliers: A, B, and C. The distance of these suppliers from the company is 230, 180, and 370 miles, respectively. Currently, the company follows a separate procurement policy and the leather is transported in medium-sized trucks from each supplier. The company responsible for transporting the leather charges a line-haul cost of $1.80 per mile for each route. The transit time for each supplier is around one day and deliveries are made on a daily basis. Linda Warnock, the newly joined logistics manager, has been given the key task of reducing the cost of transporting the leather.
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