Determine which shipping alternative would be most


1) Determine which shipping alternative would be most economical to ship 80 boxes of parts when each box has a price of $200 and holding costs are 30 percent of price, given this shipping information: overnight, $300, two-day, $260, six-day, $180.

2) A manager must make a decision on shipping. There are 2 shippers: A and B. Both offer a 2 day rate:

A for $500 and B for $525. In addition, A offers a 3 day rate of $460 and a 9 day rate of $400

B offers a 4 day rate of $450 and a 7 day rate of $410. Annual holding costs are $35% of unit price. Three hundred boxes are to be shipped and each box has a price of $140. Which shipping alternative would you recommend? Why?. Explain.

3) Briefly describe the five process types and indicate the kinds of situations in which each would be used.

4) what are the main advantages of a product layout? the main disadvantages?

5) what are the main advantages of a process layout? the main disadvantages?

6) what is the goal of line balancing ? what happens if a line is unbalanced?

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Operation Management: Determine which shipping alternative would be most
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