Question: Problem 1 1 - 6 ( Algo ) Richard s Sporting Goods needs to fill an online order for a gross ( 1 8 0

Problem 11-6(Algo)
Richards Sporting Goods needs to fill an online order for a gross (180) hockey sticks. The manager is considering shipping the order by truck to the customer in Wisconsin, at a carrier charge of $90. The delivery will take ten days and the order is paid on delivery (Richards doesnt get paid until the sticks are received). The hockey sticks are valued at $70 for each stick and Richards uses a 30 percent annual inventory carrying charge.
a. What will be the total shipping and transit inventory cost of the shipment?
b-1. If the shipment could be delivered in only two days at a cost of $180, then what will be the total shipment cost?
b-2. If the manager chooses the above option, how much money would be saved or lost?

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!