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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, Missiour. XYZ has a contract in place with Henderson Bulk Trucking company as well with the Centeral States Railroad. Both carries are available for the move. Hendreson will charge $600 per tank truck, and centeral States rate is $1000 per tankcar. Hendreson trucks can holds a maximum quantity of 7000mgallons. XYZ has a fleet of 23,500 tankcars available in Cincinnati .

a. Given the above information, evaluate the cost of each alternative.

b. What other qualitative factors should be consider in this decision?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92448411

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