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A company would like to calculate a cost-to-cost trade-off analysis for the following scenario:

Cost to ship by rail =$0.088 per unit per kilometer shipped

Cost to ship by truck =$0.122 per unit per kilometer shipped

Number of units to be shipped= 111,000

Cost of delay due to slower shipping time if rail is used = $10,500

Provide a cost-to-cost trade-off calculation for the rail-versus-truck alternative.

Based on the cost-to-cost trade-off calculations, the company should ship by ___ at a total cost (including any delay costs, where applicable) of $ ?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93131006

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