Question: 1. Two delivery options are available for delivering 50 boxes. The annual holding cost is 21 % of the cost. Assume 365 days per year.

1.

Two delivery options are available for delivering 50 boxes. The annual holding cost is 21 % of the cost. Assume 365 days per year. 2-day delivery option costs $300 while 6-day delivery option costs $100. Determine a minimum unit cost for a box for which 2-day delivery alternative would be least costly?

a.

1159

b.

579.4

c.

869

d.

1738

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