Evaluate the cost of alternative

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The XYZ chemical company must ship 11, 500 gallons of pesticides from its plant in Cincinnati, Ohio, to a customer in Columbia, Missouri three times per week. XYZ has a contract in place with Henderson Bulk Trucking company as well as with the Central States Railroad. Both carriers are available for the move. Henderson will charge $800 per tank truck, and Central States' rate is $2,500 per tank car. Henderson trucks can hold a maximum quantity of 7,000 gallons. XYZ has a fleet of 23, 500-gallon tank cars available in Cincinnati.

a) Given the above information, evaluate the cost of each alternative.

b) What other qualitative factors should be considered in this decision.

Reference no: EM133026995

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