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The XYZ Chemical Company must ship 9,500 gallons of pesticides from its plant in Cincinnati, Ohio, to a customer in Columbia, Missouri. XYZ has a

The XYZ Chemical Company must ship 9,500 gallons of pesticides from its plant in Cincinnati, Ohio, to a customer in Columbia, Missouri. XYZ has a contract in place with Henderson Bulk Trucking Company as well as with the Central States Railroad. Both carriers are available for the move. Henderson will charge $600 per tank truck, and Central States' rate is $1,000 per tank car round trip. Henderson trucks can hold a maximum quantity of 7,000 gallons. XYZ has a fleet of 23,500 gallon tank cars available in Cincinnati.

  1. Given the above information, evaluate the cost of each alternative.
  2. What other qualitative factors should be considered in this decision?

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