Problem 15-3 A manager must make a decision on shipping. There are two shippers, A and...
Problem 15-3
A manager must make a decision on shipping. There are two
shippers, A and B. Both offer a two-day rate: A for $512 and B for
$521. In addition, A offers a three-day rate of $462 and a nine-day
rate of $407, and B offers a four-day rate of $453 and a seven-day
rate of $422. Annual holding costs are 36 percent of unit price.
Three hundred and ninety boxes are to be shipped, and each box has
a price of $144. Which shipping alternative would you recommend?
(Round your intermediate calculations to 3 decimal places
and final answers to 2 decimal places. Omit the "$" 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
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Problem 15-3
A manager must make a decision on shipping. There are two
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