Question: Two delivery options are available for delivering 75 boxes. The annual holding cost is 22 % of the cost. Assume 365 days per year. 2-day

Two delivery options are available for delivering 75 boxes. The annual holding cost is 22 % of the cost. Assume 365 days per year. 2-day delivery option costs $300 while 6-day delivery option costs $100. Determine a minimum unit cost for a box for which 2-day delivery alternative would be least costly?

a.

368.7

b.

737.4

c.

1106

d.

553

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