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1. The most important inventory item has annual holding costs of $438.00. One method of shipping this item is 4 days faster than the other, but it is $0.49 more per unit.

How much more expensive is the slower method compared to the faster method? (Include the pennies in your answer)

2. Determine the 2 day incremental holding costs for shipping 75 boxes of parts when each box has a price of $220 and holding costs are 28% of the total shipment value. The shipping costs are $355 for 1 day and $300 for 3 days.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92554598

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