Question: Problem 1. (Similar to problem 13, p. 388) The ABC Chemical Company must ship 10,500 gallons of insecticides from its plant in Louisville, Kentucky to

Problem 1. (Similar to problem 13, p. 388)

The ABC Chemical Company must ship 10,500 gallons of insecticides from its plant in Louisville, Kentucky to a customer in Kansas City, Kansas. ABC has a contract in place with Sunnyvale Bulk Trucking Company as well as with Mid-States Railroad. Both carriers are available for the move. Sunnyvale will charge $700 per tank truck, and Mid-States rate is $1100 per tankcar. Sunnyvale trucks can hold a maximum quantity of 8,000 gallons. ABC has a fleet of 25,000 gallon tankcars available in Louisville.

a. Given the above information, evaluate the cost of each alternative. Which one offers the least cost transportation?

b. Name three qualitative factors that should be considered in this decision. Defend each factor choice with two sentences of reasoning.

(Free one: Time now, defend this with two sentences and provide two more qualitative factors with your reasoning).

Qualitative Factor 2 -

Qualitative Factor 3 -

*Please show all work*

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