John checked with Golden to find out what it would take to include shipments for multiple customers

on a single load. Golden informed him that it would charge $$500$ per truck and add $$50$ for each

drop$-$off for which Golden was responsible. Thus, if Golden carried a truck that had to make one

delivery, the total charge would be $$400.$ However, if a truck had to make four deliveries, the total

charge would be $$550.$

Each pound of chemical in consignment cost MoonChem $$1,$ and MoonChem had an annual holding

cost of $25$ percent. John wanted to analyze a few different options for distribution available in the

Peoria region to decide on the optimal distribution policy. One was to aggregate all $20$ customers

into each truck going to Peoria. The other was to separate the $20$ customers into two groups with

one large, three medium, and six small customers in each group. Each group would then be

aggregated into a single truck going to Peoria. The detailed study of the Peoria region would provide

the blueprint for the distribution strategy that MoonChem planned to roll out nationally.

Questions

$1.$ What is the annual cost of MoonChem$$s strategy of sending full truckloads to each customer

in the Peoria region to replenish consignment inventory?

$2.$ Consider different delivery options and evaluate the cost of each. What delivery option do you

recommend for MoonChem?

$3.$ How does your recommendation impact consignment inventory for MoonChem

From which location you think it is best to acquire additional supply of flowers, and why?