Consider a freight consolidation problem where a supplier located in Kansas City (KC) delivers merchandise to three retailers (customers) located in Chicago, Indianapolis, and Miami Each unit of merchandise weighs 8 lbs The daily shipment volumes ( in units of merchandise ) for the three customers for three consecutive days are as follows Location Shipment volume per day (units) Day 1 Day 2 Day 3 Chicago, IL 750 2,500 3,375 Indianapolis, IN 1,088 1,313 2,750 Miami, FL 5,750 4,438 7,125 The transportation rates ($ cwt) from KC to customer locations are as follows ( 1 cwt 100 lbs ) Location Transportation rate ($ cwt) 0 99 100 199 200 399 400 Chicago, IL 14 76 12 07 9 88 7 73 Indianapolis, IN 20 90 16 99 12 13 10 20 Miami, FL 24 40 20 38 18 07 16 47 The supplier currently has dedicated trucks for each of the three customers and delivers daily to each of the three customers a) What is the total (i e , for 3 days) transportation cost for the customer in Indianapolis, IN, under the current system where the supplier delivers daily b) What is the total (i e , for 3 days) transportation cost for the customer in Miami, FL, under the current system where the supplier delivers daily c) What is the total (i e , for 3 days) transportation cost for the current system where the supplier delivers daily

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Question: Consider a freight consolidation problem where a supplier located in Kansas City (KC) delivers merchandise to three retailers (customers) located in Chicago, Indianapolis, and Miami.

Consider a freight consolidation problem where a supplier located in Kansas City (KC) delivers merchandise to three retailers (customers) located in Chicago, Indianapolis, and Miami. Each unit of merchandise weighs 8 lbs. The daily shipment volumes (in units of merchandise) for the three customers for three consecutive days are as follows.

Location	Shipment volume per day (units)
Day 1	Day 2	Day 3
Chicago, IL	750	2,500	3,375
Indianapolis, IN	1,088	1,313	2,750
Miami, FL	5,750	4,438	7,125

The transportation rates ($/cwt) from KC to customer locations are as follows (1 cwt = 100 lbs):

Location	Transportation rate ($/cwt)
0-99	100-199	200-399	400+
Chicago, IL	14.76	12.07	9.88	7.73
Indianapolis, IN	20.90	16.99	12.13	10.20
Miami, FL	24.40	20.38	18.07	16.47

The supplier currently has dedicated trucks for each of the three customers and delivers daily to each of the three customers.

a) What is the total (i.e., for 3 days) transportation cost for the customer in Indianapolis, IN, under the current system where the supplier delivers daily?

b) What is the total (i.e., for 3 days) transportation cost for the customer in Miami, FL, under the current system where the supplier delivers daily?

c)What is the total (i.e., for 3 days) transportation cost for the current system where the supplier delivers daily?

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