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

A manager must make a decision on delivery alternatives. There are two carriers, 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 the freight cost for the whole lot for each option is given below. Annual holding cost is 30 percent of unit cost, and each box has a cost of $200. Assume 365 days per year. Which delivery alternative would you recommend?
Carrier A Carrier B
Options Freight Cost Options Freight Cost
2 days $5202 days $510
3 days 4904 days 480
9 days 4207 days 410
Delivery alternative
Carrier A
(Click to select)
Carrier B
(Click to select)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!