PROBLEM 15-3.
3.
value:
6.00 points
6.00 points
Problem 15-3
| 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 $154. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the “$” sign in your response.) |
| A | B | |||
| Option | Cost | Option | Cost | |
| 2 days | $ [removed] | 2 days | $ [removed] | |
| 3 days | $ [removed] | 4 days | $ [removed] | |
| 9 days | $ [removed] | 7 days | $ [removed] | |
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