Distance from a DC to two customers is 130 and 70 miles,
respectively. Demands from each are 150 and 260 cases, respectively. Find the
best mode of delivery from among the three choices:
a. Contract Carrier: DHL charges $5.80 per case. All
customers are in the same delivery zone and so the price is the same for each.
b. LTL: The rate is $2.45 per mile traveled plus a handling
fee of $2.50 per case.
c. FTL: The rate is $1.40 per mile traveled plus a handling
fee of $400. The handling fee is paid regardless of the number of cases. The
capacity of a truck is 200 cases.