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At a Port of Houston marine logistics company, a project manager usually makes critical shipping decisions. In this 4th quarter decision there are two shippers, A and B. Both offer a two-day rate: A for $514 and B for $527. In addition, A offers a three-day rate of $472 and a nine-day rate of $407, and B offers a four-day rate of $458 and a seven-day rate of $424. Annual holding costs are 31 percent of unit price. Three hundred and sixty boxes are to be shipped, and each box has a price of $146. Which shipping alternative would you recommend?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9349712

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