As a manufacturing company, Company Kappa sells their sachets of powdered juices to retailers, supermarkets and distributors instead of direct customers. Having said this, they usually deliver customer orders to each individual supermarket store for their requirements. Recently, one of the supermarket chains approached Company Kappa on a distribution optimization opportunity. They are willing to have all requirements delivered to their one warehouse and they will be the ones to breakdown the orders and send to their 10 different supermarket stores. All of this in exchange for a discount of $20.00 per case of juice sold to them. It seems a bit steep given that margins are quite tight for fast-moving packaged goods so every penny counts per case sold. Below are the different details of the supermarket stores:

	Monthly Demand
Store 1	144	cases
Store 2	117	cases
Store 3	153	cases
Store 4	64	cases
Store 5	86	cases
Store 6	452	cases
Store 7	484	cases
Store 8	494	cases
Store 9	380	cases
Store 10	196	cases

Transport costs:
Truck Type	Capacity (in cases)	Cost per Truck
4-Wheeler	100	$ 10,000
6-Wheeler	200	$ 15,000
20ft Container Van	1,000	$ 50,000

Given the sizes of the stores, stores 1 to 5 can only receive 4-wheelers while stores 6 to 10 can receive 4-wheelers and 6-wheelers. Only if they distribute directly to the warehouses can the customer receive in container vans. Company Kappa then has to decide between the following:

1. Should they consider the offer to distribute directly to the one warehouse instead of multiple stores? Are there any benefits to this?

2. If they will consider delivering directly to the warehouse, around how many $ per case can they give as discount to the customer? Is the request of the customer reasonable?