Question 3 In the example problem, which carrier would be a cheaper option if annual inventory holding cost was 20%? 7 A- Carrier 1 B- Carrier 2 C- Both would have the same cost lowest total cost - Compare two alternative shipping carriers to move a shipment of electronic chips Value of shipment = $25,000.00 Faster shipping is generally more expensive than slower shipping Carrier 1 costs $250 to ship Carrier 2 costs $20 more but delivers 1 day faster Product in transit is a form of inventory Holding costs for shipment is 40% of value per year No other cost differences across remaining logistics functions