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Problem

A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $536 and B for $525.

In addition, A offers a three-day rate of $464 and a nine-day rate of $416, and B offers a four-day rate of $459 and a seven-day rate of $436. Annual holding costs are 37 percent of unit price.

Three hundred and ninety boxes are to be shipped, and each box has a price of $154. 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.)

A		B
Option	Cost	Option	Cost
2 days	$	2 days	$
3 days	$	4 days	$
9 days	$	7 days	$

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92759225

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