A Calgary based manager must make a decision on delivery alternatives for transporting a product from its supplier in Toronto, Ontario to the Calgary retail outlet. There are two carriers: A and B$,$ available that can physically move the material in question.

Two hundred boxes are to be delivered and the freight cost for the whole lot for each option is given below. Annual holding cost is $25$ percent of unit cost, and each box has a cost of $$240.$ Assume $365$ days per year.

Carrier A Carrier B

Options A Freight Cost $($$$)$ Options C Freight Cost $($$$)$

$2$ days $5503$ days $475$