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A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $530 and B for $521. In addition, A offers a three-day rate of $466 and a nine-day rate of $417, and B offers a four-day rate of $459 and a seven-day rate of $432. Annual holding costs are 37 percent of unit price. Three hundred and twenty boxes are to be shipped, and each box has a price of $154. Which shipping alternative would you recommend?

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Operation Management, Management Studies

Category:- Operation Management
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