What mode of transportation should he choose


Problem: A manager must transport 100 units of a product from Halifax to Quebec annually. The unit purchase price is $100 and the ownership rate is 6%/year. He hesitates between two modes of transport, the train and the truck, for which he collected the following information: Freight costs $10/unit $5/unit Time of transport 5 days 2.5 days Security stocks 12 units 10 units Based on the costs, what mode of transportation should he choose?

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