Question: A manager must make a decision on delivery alternatives. There are two shippers, A and B. Both offer a two-day rate. In addition, A offers

A manager must make a decision on delivery alternatives. There are two shippers, A and B. Both offer a two-day rate. In addition, A offers a three-day rate and a nine-day' rate, and B offers a four-day rate and a seven-day rate. Three hundred boxes are to be delivered and tire freight cost for the whole lot for each option are given below. Annual holding cost is 35 percent of unit cost, and each box has a cost of $140. Which delivery alternative would you recommend?

shipper A Shipper B Options igh Cos Opton Freight Cost 2 doys 3 doys 9 days $500 2 days 460 4 days 4007 days $525 450 410

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