Question: A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $524 and B
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $524 and B for $531. In addition, A offers a three-day rate of $466 and a nine-day rate of $420, and B offers a four-day rate of $455 and a seven-day rate of $414. Annual holding costs are 38 percent of unit price. Four hundred and ten boxes are to be shipped, and each box has a price of $156. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "$" sign in your response.)
| A | B | |||
| Option | Cost | Option | Cost | |
| 2 days | $ | 2 days | $ | |
| 3 days | $ | 4 days | $ | |
| 9 days | $ | 7 days | $ | |
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Ship two-day using A
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Ship three-day using A
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Ship two-day using B
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Ship four-day using B
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Ship seven-day using B
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