Four hundred and ten boxes are to be shipped and each box, Ask an Expert

Management Studies

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 $525. In addition, A offers a three-day rate of $470 and a nine-day rate of $401, and B offers a four-day rate of $458 and a seven-day rate of $416. Annual holding costs are 40 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? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

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