A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate:...
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $504 and B for $526. In addition, A offers a three-day rate of $472 and a nine-day rate of $410, and B offers a four-day rate of $452 and a seven-day rate of $428. Annual holding costs are 30 percent of unit price. Three hundred and sixty boxes are to be shipped, and each box has a price of $150. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "$" sign in your response.) |
A | B | |||
| Option | Cost | Option | Cost | |
| 2 days | $ [removed] | 2 days | $ [removed] | |
| 3 days | $ [removed] | 4 days | $ [removed] | |
| 9 days | $ [removed] | 7 days | $ [removed] | |
9 years ago
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