Use the information given in the case (along with Table 1 to Table 5) to address the decision problem. Mayank Logistics (ML) is a freight forwarding company. A forwarder helps clients transport their goods to a certain destination (normally in a foreign land) through a combination of various transportation modes (rail, road, air, water). They charge clients according to the weight of the consignment. To achieve economies of scale, consignments from different clients are typically aggregated, thus, reducing transportation costs through consolidation. ML handed a variety of goods for a diverse set of clients for transportation to international location. Table 1 refers to the rates (INR per kg) being offered by different airlines across different aggregated shipment quantity bookings. ML informed to all clients that during a certain week, a certain dispatch schedule will be followed (Refer Table 2). For instance, shipment received on Saturday and Monday will be dispatched on Tuesday. Currently ML operations services to Frankfurt as the destination location. It approximately takes 48 hours to ship goods from India to Frankfurt by air depending on the day on which it received shipment from client. Pranav, supply chain manager at ML, was responsible to collect information about clients for the upcoming month (Refer Table 3). The requirements of individual clients at Hyderabad/Bangalore/Chennai are consolidated at MLs own warehouse at these respective client locations. Shipments will be dispatched to Frankfurt using cargo space available in passenger airlines (A1, A2, A3 and A4) from these client locations. The availability of flight options from these three Indian cities are mentioned in Table 5. Pranav was wondering if ML could achieve better cost efficiencies by moving the goods through another airport through overnight road transportation and move the shipments to MLs warehouse in another city at an additional cost (Refer Table 4). Can Pranav formulate a plan for such modified consolidation and how much does he save for such modified consolidation?

and how much does he save for such modified consolidation? Table 1: Rates (INR per kg) offered by Airlines A3 A4 A1 A2 Shipment Size in Kg 135 125 1-100 101-500 501-1000 More than 1000 150 135 120 110 145 130 110 100 130 120 100 90 105 95 Table 2: Weekly Consolidation Shipment Schedule Sun Fri Wed Mon Day Demand Accumulated across the week Tue Saturday and Monday Thu Tuesday and Wednesday Sat Thursday and Friday Table 3: Shipments Planned by various Clients for Frankfurt Origin Hyderabad Hyderabad Hyderabad Bangalore Bangalore Bangalore Bangalore Bangalore Bangalore Chennai Chennai Chennai Chennai Shipment Size per Day (in Kg) 100 1000 300 100 1500 400 250 50 200 700 300 500 2000 Client A B D E F G H I J K L M Table 4: Road Transportation Costs (INR per KG) Hyderabad Bangalore 8 Chennai 9 4 City Hyderabad Bangalore Chennai 8 4 9 Table 5: Airline Schedule to Frankfurt Mon Tue Wed Thu Sun Fri Airline Sat Available Available Available Available A4 Available Origin Hyderabad Bangalore Chennai Hyderabad Bangalore Chennai Hyderabad Bangalore Chennai Hyderabad Bangalore Chennai A2 Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available Available A3 Available Available Available Available Available Available