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 transporting the goods (by trucks) from Kansas City to the other cities.

Total costs for the new system will be the total of (3) and (4).

Although a high percentage of demand was from warehouses either south or east of Kansas City, the question has surfaced concerning the