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1. A manager at Strateline Manufacturing must choose between two shipping alternatives; two-day freight and five-day freight. Using five-day freight. Using 5 day freight would cost $135 less than using two-day freight. The primary consideration is holding cost, which is $10 per unit a year. Two thousand items are to be shipped. Which alternative would you recommend? Explain

2. Determine which shipping alternative would be most economical to ship 80 boxes of part when each boxes has a price of $ 200 and holding costs are 30 percent of price, given this shipping information: overnight, $260, six days, $ 180.

Operation Management, Management Studies

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