Estimate annual holding cost rate for type of item


A container of ball bearings valued at $25000currently located in Houston TX needs to be delivered to Morton IL. The standard shipment methods take two days. However for an additional charge of $500, the container can be sent overnight. The annual holding cost rate for this type of item has been estimated at 28%. What option is more economical?

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Operation Management: Estimate annual holding cost rate for type of item
Reference No:- TGS086143

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