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In addition to the objectives stated above, management wished to evaluate an alternate mode and methods of transportation. The company could stop the use

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In addition to the objectives stated above, management wished to evaluate an alternate mode and methods of transportation. The company could stop the use of the freezer cars for delivery up to Butte, Montana, and use trucking instead. The delivery to the retail outlets would also continue to be done by motor carrier. It was decided that if any changeover is economical for the company and the new system (if any at all) works well for Tender Most in 2011, in subsequent years, similar feasibility exercises could be carried out for other products. The cost for common-carriage TL transportation was estimated to be $12.50 per cwt. from Kentucky to Butte, MT (expected load of 30,000 lbs.). The lead time for this option is 4 days with a standard deviation of 1 day. In addition to this option, Hickory Hill has been approached by a trucking company with a dedicated transportation proposal. The company has quoted Hickory Hill a rate of $5,500 per full truckload trip. Each trailer has a capacity of holding a maximum of 1,680 cases of Tender Most (or 420 cwt.). The lead time for this option was 1 day with guaranteed on-time service. The trucking company has the necessary equipment to service the Hickory Hill account if multiple trucks are needed.

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