Question: A manager must make a decision on shipping There are
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $500 and B for $ 525. In addition, A offers a three-day rate of $ 460 and a nine-day rate of $400 and B offers a four-day rate of $ 450 and a seven-day rate of $ 410. Annual holding costs are 35 percent of unit price. Three hundred boxes are to be shipped, and each box has a price of $ 140. Which shipping alternative would you recommend? Explain.
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