A company needs to ship 500 mens suits valued at $600 each to its distribution center. Annual
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A company needs to ship 500 men’s suits valued at $600 each to its distribution center. Annual inventory carrying costs are 20%. Shipment by truck would take 8 days at a cost of $500. Shipment by air would take 2 days at a cost of $2,000. If cost is the most important factor, which transportation mode should be used? Why?
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Managing Operations Across The Supply Chain
ISBN: 9781260547634
4th Edition
Authors: Morgan Swink, Steven Melnyk, Janet L. Hartley, M. Bixby Cooper
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