The XYZ Chemical Company must ship 9,500 gallons of pesticides from its plant in Cincinnati, Ohio, to a customer in Columbia, Missouri. XYZ has a contract in place with Henderson Bulk Trucking Company as well as with the Central States Railroad. Both carriers are available for the move. Henderson will charge $600 per tank truck, and Central States rate is $1,000 per tankcar. Henderson tanks can hold a maximum quantity of 7,000 gallons. XYZ has a fleet of 23,500-gallon tankcars available in Cincinnati.
a. Given the above information, evaluate the cost of each alternative.
b. What other qualitative factors should be considered in this decision?