This case study involves the Grainger Inc. company on page $445-447$ in the textbook. This exercise involves analyzing$/$calculating the cost of changing$/$reengineering the distribution center location in the company's supply chain. Your job is to calculate the total costs of the old system and the total costs of the new system. After calculating these costs, you should be able to answer the $4$ questions mentioned in the case.

To solve this problem you have to assume that you are working for the company, and your boss$/$supervisor is asking you to look at the current system and if a new system would be worthwhile to consider. Since this is an MBA level course, I expect everyone to be able to do this.

I expect everyone of you to do this case on your own without any help from me or the instructional coach $($Dr$.$ katie Lopez$).$ You're welcome to use the bulletin board to ask any questions or to get help from others in the class. And, if you can figure out the answers, you are welcome to help others too. But, please try to answer the questions in away that it will help them to think, instead of giving all the answers to copy.

You should use MS excel to calculate all the costs involved. Please copy all your excel work to a MS Word document. I need to see the individual cost and the total costs for the old system and the new system.

Hints:

$1)$ You need to calculate the following costs first:

Port processing fee for both ports, LA and Seattle.

The transportation$/$rail costs from these two ports to Kansas City.

Unloading and quality check costs at Kansas City.

$2)$ Calculate the total cost for transporting the goods $($by trucks$)$ from Kansas City distribution center to all nine cities.

Total costs for current system will be the total of $(1)$ and $(2)$

$3)$ Calculate the total cost for the new system

Port processing fee for both ports, LA and Seattle

Transportation$/$rail cost from Seattle port to LA

Unloading and quality check cost at LA$.$

LA Distribution Operating costs

Transportation costs by rail for $82\%$ of the goods to Kansas City

$4)$ Calculate the total cost for trans