Question: A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $530, and
A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $530, and B for $521. In addition, A offers a three-day rate of $466 and a nine-day rate of $417, and B offers a four-day rate of $459 and a seven-day rate of $432. Annual holding costs are 37 percent of unit price. Three hundred and twenty boxes are to be shipped, and each box has a price of $154. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.) Option 2 days 3 days 9 days A Cost Option 2 days 4 days O ship two-day using A Oship three-day using A Oship seven-day using B Oship four-day using B Oship two-day using B 7 days B Cost
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