Your mid-sized wholesale company deals mostly in low cost commodity items. One particular product, dehydrated water, has a holding cost of only $1.87 per case.
You have been purchasing this amazing product for more than a year paying only $4.10 per case for standard shipping terms of 6 day delivery. This vendor is now offering 2 day delivery for only $2.80 shipping costs per case.
What is the incremental holding cost when changing from 6 day service to 2 day service?