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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 $538 and B for $529. In addition, A offers a three-day rate of $472 and a nine-day rate of $406, and B offers a four-day rate of $455 and a seven-day rate of $428. Annual holding costs are 39 percent of unit price. Four hundred and ten boxes are to be shipped, and each box has a price of $156. Which shipping alternative would you recommend?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91764028

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