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Compute of the economic cost of shipping machine by boat and decision making as per the result.

An 8/30/2004m wall street Journal article, "Once a Footable Flat Screens Grow into huge industry, "decribed how exicutives of the firm AU Optronics had a 210ton machine(used in its production process) shipped by air grow from Germany to their newly built factory in Taiwan. "That meant using the worlds largest plane... and playing around $500,000, twice the amount that delivery by sea would have cost." The decision will shotern construction time of the new factory by 40days, "time that could mean tens of millions of dollars in production." Illustrate what is the economic price of shipping the machine by boat? describe. Do you agree with their decission?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M922607

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