A manager must make a decision on shipping there are two


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 $

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Operation Management: A manager must make a decision on shipping there are two
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