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Questions 1-5 refer to the following data Consider a freight consolidation problem where a supplier located in Kansas City (KC) delivers merchandise to three retailers
Questions 1-5 refer to the following data Consider a freight consolidation problem where a supplier located in Kansas City (KC) delivers merchandise to three retailers (customers) located in Denver, Salt Lake City, and Los Angeles. The daily shipment volumes for the three customers for three consecutive days are as follows. Shipment Volume/day (lbs.) Day 1 Day 2 Day 3 20,000 27,000 8,700 10,500 22,000 46,000 35,500 57,000 Location Denver, CO Salt Lake City, UT Los Angeles, CA 6,000 The transportation rates ($/cwt) from KC to customer locations are as follows (1 cwt = 100 lbs). Transportation rate ($/cwt) 100-199 200-399 400+ Denver, CO 11.62 9.50 7.78 6.09 Salt Lake City, UT 16.46 13.38 9.55 8.03 Los Angeles, CA 19.21 16.05 14.23 12.97 The supplier currently has dedicated trucks for each of the three customers and delivers daily to each of the three customers. Question 1 (7 points) The total (i.e., for 3 days) transportation cost for the customer in Denver, CO, under the current system, where the supplier delivers daily, is approximately equal to Question 2 (8 points) The total (i.e., for 3 days) transportation cost for the customer in Los Angeles, CA, under the current system, where the supplier delivers daily, is approximately equal to Question 3 (8 points) The total (i.e., for 3 days) transportation cost for the current system, where the supplier delivers daily, is approximately equal to
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