Project #69233 - Operations Management

 

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

$  

 

2 days

$  

  3 days

$  

 

4 days

$  

  9 days

$  

 

7 days

$  


 


 

 

 

Ship two-day using A

 

Ship three-day using A

 

Ship two-day using B

 

Ship four-day using B

 

Ship seven-day using B

 

Subject Business
Due By (Pacific Time) 05/03/2015 04:00 pm
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