You should use MS excel to calculate all the costs involved. Please copy all your excel work to a MS Word document. I need to see the individual cost and the total costs for the old system and the new system.

Hints:

1) 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).

Answer question 1 to 4 on page 446 – 447.