Problem
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $536 and B for $525.
In addition,A offers a three-day rate of $464 and a nine-day rate of $416, and B offers a four-day rate of $459 and a seven-day rate of $436. Annual holding costs are 37 percent of unit price.
Three hundred and ninety boxes are to be shipped, and each box has a price of $154. Which shipping alternative would you recommend?
(Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)
|
A
|
|
B
|
| Option |
Cost |
|
Option |
Cost |
| 2 days |
$ |
|
2 days |
$ |
| 3 days |
$ |
|
4 days |
$ |
| 9 days |
$ |
|
7 days |
$ |
|
|
Ship three-day using A |
|
Ship two-day using B |
|
Ship four-day using B |
|
Ship seven-day using B |
|
Ship two-day using A |
|