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Question: Jones Nurseries has received orders from four different customers located in Alabama. Each order has a shipment weight of 6,000 pounds. In discussions with transportation carriers, the best rate Jones received was $28 per hundredweight for a 6,000-pound shipment. However, one carrier quoted a transportation cost of $20 per hundredweight for a consolidated shipment, with an additional charge of $200 for each stop on the delivery. Should Jones choose the consolidated shipment alternative?

Operation Management, Management Studies

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