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Your options for shipping ?$95,490 of machine parts from Baltimore to Kuala? Lumpur, Malaysia, are? (1) use a ship that will take 29 days at a cost of ?$3,400?, or? (2) truck the parts to Los Angeles and then ship at a total cost of ?$4,950. The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30?% of the value per year. If you have a third option and it costs only $4,040 and also takes 20 ?days, what is your most economical? plan?

The daily holding cost of Alternative 1 is ?$____. ?(Enter your response rounded to two decimal? places.)

The daily holding cost of faster shipping with Alternative 2 is ?$____. ?(Enter your response rounded to two decimal? places.)

The daily holding cost of faster shipping with Alternative 3 is ?$____. ?(Enter your response rounded to two decimal? places.)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92544854

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