Question: Your options for shipping $ 9 6 , 2 7 0 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are Alternative 1 ) use

Your options for shipping $96,270 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are
Alternative 1) use a ship that will take 32 days at a cost of $3,570, or
Alternative 2) truck the parts to Los Angeles and then ship at a total cost of $4,930.
The second option will take only 18 days. You are paid via a letter of credit the day the parts arrive.
Your holding cost is estimated at 30% of the value per year.
Your answers: (yellow cells)
which transportation is more economical?
What is the holding cost? (enter your response rounded to two decimal places)
What issues are not included in the data presented?
A. For each additional day it takes to deliver the parts, customer satisfaction is likely to decrease.
B. For each additional day it takes to deliver the parts, you forgo the interest you could have earned on the payment.
C. For each additional day it takes to deliver the parts, total fuel costs for shipping increase.
D. All of the above.
E. Only A and B.
 Your options for shipping $96,270 of machine parts from Baltimore to

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