1. Suppose the shipping cost in a 20' container from Madrid, Spain to Los Angeles is approximately...
Question:
1. Suppose the shipping cost in a 20' container from Madrid, Spain to Los Angeles is approximately $2,350. The average shipment value of cargo in a 20' container is $51,100. The annual inventory carrying cost is 20%. It takes approximately 20 days from Madrid, Spain to Los Angeles.What is the in-transit inventory carrying cost per container during the shipping period (20 days)?
Hint: Find the carrying cost per day and then multiply 20 days (shipping duration).
a. 460
b. 500
c. 600
d. 560
1.a Suppose the shipping cost in a 20' container from Madrid, Spain to Los Angeles is approximately $2,350. The average shipment value of cargo in a 20' container is $51,100. The annual inventory carrying cost is 20%. It takes approximately 20 days from Madrid, Spain to Los Angeles.
If the company ships 40 containers every month, what is the total monthly carrying cost;
Introductory Statistics Exploring The World Through Data
ISBN: 9780135163146
3rd Edition
Authors: Robert Gould, Rebecca Wong, Colleen N. Ryan