Question content area

Part $1$

Your options for shipping

$$$$97$ comma $92097,920$

of machine parts from Baltimore to Kuala$$ Lumpur, Malaysia, are$(1)$ use a ship that will take

$2929$

days at a cost of

$$$$3$ comma $6503,650,$

or$(2)$ truck the parts to Los Angeles and then ship at a total cost of

$$$$4$ comma $8204,820.$

The second option will take only

$2020$

days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at

$3030\%$

of the value per year.

If you have a third option and it costs only

$$$$4$ comma $1504,150$

and also takes

$2020$

$$days$,$ what is your most economical$$ plan?

Part $2$

The daily holding cost of Alternative $1$ is

$$$$380380.$

$($Enter your response rounded to two decimal$$ places.$)$