Detail costs involved. A European manufacturer of industrial furniture has a factory located in warehouses in Western Europe. The warehouses collect customer orders, which are then shipped from the factory. Upon receipt, the warehouse distributes customer orders using small trucks. Daily demand at each of the four warehouses along with distance from Munich is as shown following: All shipments are by truck. Three truck sizes are available, with capacities of 40,000 (small) 60,000 (medium) and 80,000 kg (large).Transportation costs for the three types of trucks are Small: 100 + 0.1x euros Medium 125 + 0.1x euros Large: 150 + 0.1x euros where x is the distance to be traveled in kilometres. For replenishment frequency varying between one and four days for each warehouse, identify the optimal transportation option and the associated cost. What other factors should be considered before deciding on the replenishment frequency?
