Homework Answers
Annual holding cost of each box = 410x144 x0.39 = 23025
Daily cost of holding of consignment = 23025/365 =63.08
Option A
2 days cost = 502+2x63.08 =628.16
3 days cost =470 +3x63.08 =659,24
9 days cost =401+9x63.08 =968.72
Option B
2 days cost = 520+2x63.08 =646.16
4 days cost = 455+4x63.08 =707.32
7 day cost = 436 +7x63.08 =877.56
The best option is to ship by A using 2 days option
Option 1 is right
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