At a point in Ohio, a manufacturer of hydraulic equipment (hoses, cylinders, and controls) consolidates the items
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The manufacturer owns the goods in transit until they arrive at the destination port and is concerned with the cost of inventory while in transit. The product in transit is valued at $185/lb and 20,000 lb are shipped per year. The company's cost of capital is 17 percent per year.
From purely an inventory-transportation viewpoint, which transport mode should be used?
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Related Book For
Business Logistics Supply Chain Management
ISBN: 978-0130661845
5th edition
Authors: Ronald H. Ballou
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