Propose two alternative distribution strategies

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Distribution Alternatives for Illinois

Ellen staffs propose two alternative distribution strategies for the store in Illinois.

Use direct shipping with even larger trucks that had a capacity of 40,000 units. These trucks charged only $1,150 per delivery to an Illinois store. Using large trucks would lower transportation cost but increase inventories because of the larger batch sizes.

Run milk runs from each supplier to multiple stores in Illinois to lower inventory cost even if the cost of transportation increased. Large trucks (capacity of 40,000 units) would charge $1,000 per shipment and a charge $400 per shipment and a charge of $50 per delivery.

Reference no: EM13731172

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