Configuration for shipping classes

Hey guys,
I have been trying to come up with a solution for this issue by analyzing whats really needed but I couldnt reach to a solution.
Basicaly, my website is a multi-vendor store, which allow vendors from different cities to publish their products. Now in Argentina, 23 cities, it was little complicated to create for each store his own shipping. Althought the basic prices are categories into
Regional shipping (within the city of the vendor) up to 1 KG – X$
Natioanl shipping (outside the city of the vendor) up to 1 KG – X2$
Regional shipping (within the city of the vendor) up to 5 KG – Y$
Natioanl shipping (outside the city of the vendor) up to 5 KG – Y2$
Regional shipping (within the city of the vendor) up to 10 KG – Z$
Natioanl shipping (outside the city of the vendor) up to 10 KG – Z2$
Now the idea is how can this be done and allow the vendor to choose either it free, local pick, or shipping depending on the location of the buyer. Now in case of geoloaction and the website determines the location by zip code, Argentina has 23 cities and each has around 200. which means that its around 4600 options. are these options entered in the zones? Could this be the solution?
I would really appreciate any guidance or help on this issue