Currently, for the retailers in Vermont and in the immediately neighboring states, the costs of direct distribution to the retailers are paid by Crowley Cheese. Flat-rate costs to these locations/retailers are independent of distance because of their proximity to the Crowley Cheese manufacturing facility. For these local retailers only, transportation costs are estimated at: $0.20 per pound to retail locations in Vermont, and $0.50 per pound to retail locations in Maine, New Hampshire, Massachusetts, and New York. Other retailers pay their own freight/shipping costs. For retailers outside of Vermont and the neighboring states listed above, the transportation costs are proportional both to weight/load of the distributed product and the distance to the production facility.

For meeting ever-growing demand, additional analysis is required. Crowley would like to outsource the transportation and distribution to a 3rd-party logistics provider such as FedEx, UPS, or others. This should be a separate analysis and decision, and not integrated with any capacity expansion decision.

Given the current regional locations and shipping costs (immediately above), and shipping volumes of product to various retailers in Vermont and the neighboring states: in order to not increase current total shipping costs, what would be the maximum monthly fee that an outsourced delivery service should charge Crowley Cheese for all deliveries to all customers in those states? The relevant locations and order volumes (Vermont and its neighboring states) are shown in Appendix C.

Investigate and research: could a 3rd-party logistics provider such as FedEx or UPS be able to provide this type of service at this price/cost, or would the expected outsourced cost exceed the current estimated costs? Provide only a couple of "worst case" or "best case" examples that verify or justify your decision.

What qualitative criteria should be considered before outsourcing delivery of products to retailers in these states (Vermont and its neighboring states)?

If Crowley Cheese established a distribution center to service only the retailers outside of those in Vermont and the neighboring states: ideally where should a new distribution center be located based on the current product allocation to those retailers?

Appendix C:

		Current allocation of monthly production to retail locations:
	Crowley Cheese
	Production Location	Healdville, Vermont	-72.83	43.45
		(near Mt. Holly)
Distribution & Sales				Average Monthly
	Retail Locations		Longitude	Latitude	Demand
	State	City	X	Y	(in lbs)
	California	Calistoga	-122.58	38.58	45
	Connecticut	Bloomfield	-72.74	41.84	70
		Darien	-73.47	41.08	70
		Fairfield	-73.26	41.14	70
		New Hartford	-72.98	41.88	70
		New Haven	-72.93	41.31	70
		Norwalk	-73.41	41.18	70
		Southington	-72.88	41.61	70
		Stamford	-73.54	41.05	70
		Westport	-73.36	41.14	70
		Wilton	-73.44	41.20	70
		Woodstock	-72.02	41.97	70
	Florida	Gainsville	-82.32	29.65	45
		Indian Harbor Beach	-80.59	28.15	45
	Georgia	Atlanta	-84.39	33.75	45
	Maine	Bangor	-68.78	44.80	60
		East Waterboro	-70.68	43.63	60
		Ellsworth	-68.42	44.54	60
		Scarborough	-70.33	43.59	60
		Southwest Harbor	-68.32	44.28	60
	Massachusetts	Acton	-71.43	42.49	70
		Amherst	-72.52	42.37	70
		Brewster	-70.08	41.76	70
		Cambridge	-71.11	42.37	70
		Falmouth	-70.61	41.55	70
		Great Barrington	-73.36	42.20	70
		Greenfield	-72.60	42.59	70
		Jamaica Plain	-71.11	42.31	70
		Lenox	-73.28	42.36	70
		Pittsfield	-73.25	42.45	70
		Marlborough	-71.55	42.35	70
		Newburyport	-70.88	42.81	70
		Oak Bluffs	-70.56	41.45	70
		South Dennis	-70.16	41.70	70
		Westport	-71.05	41.64	70
		Worcester	-71.80	42.26	70
	Montana	Bozeman	-111.05	45.68	45
	New Hampshire	Amherst	-71.63	42.86	70
		Concord	-71.54	43.21	70
		Durham	-70.93	43.13	70
		Hanover	-72.29	43.70	70
		Lebanon	-72.25	43.64	70
		Milford	-71.65	42.84	70
		Newport	-72.17	43.37	70
		North Conway	-71.13	44.05	70
		South Effington	-70.98	43.70	70
		Walpole	-72.43	43.08	70
	New Jersey	South Colts Neck	-74.17	40.29	60
		Hoboken	-74.03	40.74	60
		Paramus	-74.08	40.08	60
		Princeton	-74.67	40.38	60
		Wall	-74.07	40.16	60
	New York	Astoria	-73.93	40.76	70
		Brooklyn (1)	-73.96	40.65	70
		Brooklyn (2)	-73.96	40.65	70
		Brooklyn (3)	-73.96	40.65	70
		Cross River	-73.61	41.26	70
		Greenvale	-73.63	40.81	70
		Harlem	-73.94	40.81	70
		Holley	-78.03	43.23	70
		Hoosick	-73.33	42.86	70
		New York City	-74.01	40.71	70
		Pelham	-73.81	40.91	70
		Plainview	-73.47	40.78	70
		Red Hook	-73.88	42.00	70
		Upper West Side NYC	-73.97	40.79	70
		Salem	-73.33	43.17	70
		Water Mill	-72.35	40.92	70
		Whitehall	-73.40	43.56	70
	Ohio	Cincinnati	-84.51	39.10	45
		Fairfield	-84.56	39.35	45
		Columbus	-83.00	39.96	45
	Pennsylvania	Gettysburg	-77.23	39.83	45
	Rhode Island	Newport	-71.31	41.49	45
		Providence	-71.41	41.82	45
		Tiverton	-71.21	41.63	45
	Vermont	Arlington	-73.15	43.07	70
		Ascutney	-72.41	43.40	70
		Barnard	-72.62	43.73	70
		Bellows Falls	-72.44	43.13	70
		Belmont	-72.82	43.41	70
		Bennington	-73.20	42.88	70
		Brandon	-73.09	43.80	70
		Brattleboro	-72.56	42.85	70
		Burlington	-73.21	44.48	70
		Castleton	-73.19	43.63	70
		Charlotte	-73.26	44.31	70
		Chester	-72.60	43.26	70
		Cuttingsville	-72.88	43.49	70
		Dorset	-73.10	43.25	70
		Dorset	-73.10	43.25	70
		Essex Junction	-73.11	44.49	70
		Fairlee	-72.17	43.94	70
		Hardwick	-72.35	44.52	70
		Hyde Park	-72.62	44.59	70
		Jamaica	-72.79	43.10	70
		Killington	-72.79	43.66	70
		Londonderry	-72.81	43.21	70
		Ludlow	-72.70	43.40	70
		Manchester	-73.07	43.16	70
		Mendon	-72.93	43.65	70
		Mt. Snow	-72.92	42.96	70
		Newbury	-72.12	44.10	70
		Newfane	-72.66	42.99	70
		Norwich	-72.30	43.73	70
		Pittsford	-73.03	43.71	70
		Pownal	-73.23	42.79	70
		Proctorsville	-72.64	43.38	70
		Putney	-72.52	43.00	70
		Quechee	-72.42	43.65	70
		Reading	-72.60	43.49	70
		Rutland	-72.97	43.61	70
		Shelburne	-73.22	44.39	70
		South Burlington	-73.17	44.47	70
		South Royalton	-72.52	43.82	70
		South Woodstock	-72.53	43.57	70
		Stowe	-72.70	44.48	70
		St. Johnsbury	-72.02	44.42	70
		Stratton	-72.90	43.06	70
		Taftsville	-72.47	43.63	70
		Waitsfield	-72.81	44.19	70
		Warren	-72.86	44.11	70
		Waterbury	-72.76	44.34	70
		Waterbury Center	-72.72	44.38	70
		West Arlington	-73.21	43.10	70
		West Brattleboro	-72.60	42.86	70
		Westminster	-72.46	43.07	70
		Weston	-72.79	43.30	70
		White River Junction	-72.32	43.65	70
		Wilmington	-72.87	42.87	70
		Winhall	-72.91	43.16	70
		Woodstock	-72.52	43.62	70
Online
	Home store online	https://store.crowleycheese.com/	-72.83	43.45	125
	Rutland, VT	www.BestofVermont.com	-72.97	43.61	80
PO Box 130 Sandgate, VT 05250	www.FortunaSausage.com	-73.20	43.15	80
	NYC	www.thedairywagon.com	-74.01	40.71	80
	Scranton, PA	www.igourmet.com	-75.66	41.41	80
		Total average demand per month			9285
		Monthly Production:		8760
		# of current distribution locations:		137
		Average load per location per month:		63.94161