**Scenario:**

Weyerhaeuser Inc., a brown paper manufacturer in Longview, WA, is exploring options to reduce delivery costs to its customers in Miami, Florida. Currently, the company sells full truckload quantities to customers in the Miami area. The trucking distance is 3,300 miles, and the transit time is 5 days per truckload. The supply chain director is considering setting up a warehouse in Chicago. In this scenario, brown paper would be transported from Longview to the Chicago warehouse by rail, and then trucked from Chicago to Miami by Schneider when orders are placed. The director is evaluating if this would result in lower delivery costs.

**Data Points:**
- Current shipping: 7 truckloads per week from Longview to Miami
- Maximum: 350 truckloads per year (50 working weeks)
- Schneider trucking line haul rate: $3.00/mile
- Distance: Longview to Miami is 3,300 miles; Chicago to Miami is 1,400 miles
- BNSF Rail freight: $20,000 per boxcar from Longview to Chicago
- Boxcar capacity: 3.5 trucks
- Rail mileage: 2,240 miles from Longview to Chicago
- Rail transit time: 5 days
- Chicago warehouse operation cost: $300,000/month
- Use the PADD (U.S. On-Highway Diesel Fuel Prices) and Fuel Surcharge Chart (starting at $1.50) to calculate fuel surcharges
- BNSF rail fuel surcharge: $0.50 per mile

**Tasks:**

A) Calculate the total annual delivery cost for shipping directly from Longview, WA, to Miami, FL, using trucks.

B) Calculate the total annual delivery cost using a combination of rail, warehousing, and trucking.

C) Provide your recommendation based on the cost analysis.