Find annual holding cost rate for type of item, Operation Management

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Find annual holding cost rate for type of item

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Q: A container of ball-bearings valued at $25,000, currently located in Houston, TX, needs to be delivered to the Morton, IL plant. The standard shipment method takes 2 days. However, for an additional charge of $500, the container can be sent overnight. The annual holding cost rate for this type of item has been estimated at 28%. What option is more economical?

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Operation Management: Find annual holding cost rate for type of item

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