D. $3300

E. $4938

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.) Location Day 1 Day 2 Day 3 Denver, CO 6,000 20,000 27,000 Salt Lake City, UT 8,700 10,500 22,000 Los Angeles, CA 46,000 35,500 57,000 The transportation rates ($/cwt) from KC to customer locations are as follows (1 cwt = 100 lbs). Transportation rate ($/cwt) 0-99 100-199 200-399 400+ 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. Next consider a freight consolidation problem, called temporal consolidation, where the shipments for the three days for each customer are consolidated into a single shipment to be delivered on Day 1. However, supplier still has dedicated trucks for each of the three customers. This means that each of the three customers receive shipments enough to cover 3 days of demand on Day 1 through dedicated trucks (i.e., one truck going to Denver, a second one going to Salt Lake City and a third one going to Los Angeles). No additional shipments are delivered on Day 2 and Day 3. The total savings in transportation cost (over the current system) due to temporal freight consolidation is: $3,203 (approx.) O $2,407 (approx.) 0 $2,531 (approx.)