Problem $11-9($Algo$)$

The table below provides shipping rates for packages using UPS next$-$day air or ground service options. The rates vary according to both the weight of the package and the distance of the shipment $($larger numbered zones are farther away$).$ Note that the zone number also indicates the number of days required to deliver a package using ground service. A transportation manager must ship orders of materials weighing three pounds each to destinations in each of the seven zones listed in the table. The daily inventory holding rate is $$5\mathrm{.}50$ per day for all orders. The manager has decided to use next$-$day air service for all shipments.

a$.$ Calculate the additional in$-$transit inventory cost of using ground shipping for each zone. Then calculate the net additional cost of using next$-$day air shipping for each zone, including any savings in in$-$transit inventory cost

b$.$ Considering all shipments combined, is the decision to switch to air shipping cost effective?

Complete this question by entering your answers in the tabs below.

Required A inventory cost.

Show less $4$

$\backslash$table$[[$Zone $($days to deliver$),1,2,3,4,5,6,7],[$Additional in$-$transit inventory cost to ground ship $($based on days in$-$transit$)],[$Total additional cost to air ship,,,,,,,$]]$