Truck Freight Costs = $3,693
LIT to LIT = 20 units * $6/100lbs = 120
LIT to DEN = 40 * 6 + 40 * 12 = 720
LIT to MSP = 20 * 6 + 20 * 13 = 380
LIT to HUF = 15 * 6 + 15 * 9 = 225
LIT to DTW = 55* 6 + 55 * 13 = 1045
LIT to ATL = 45 * 6 + 45 * 9 = 675
LIT to HOU = 33 *6 + 33 * 10 = 528
3. Consolidation Costs = $228
4. Lost Sales = $978
Third day: LIT = 20 units * $100/unit * 0.005 = 10
Fourth day: HUF + HOU + ATL = 93 * 100 * 0.01 = $93
Fifth day: DEN + DTW = 95 * 100 * 0.05 = $475
Sixth day: MSP = 20 * 100 * 0.2 = $400
Total costs = $7,410 + $3,693 + $228 + $978 = 12,309
Alternative 2
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