# PROBLEM 15-3

PROBLEM 15-3.

3.
value:
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]
 [removed] Ship three-day using A [removed] Ship two-day using B [removed] Ship four-day using B [removed] Ship seven-day using B [removed] Ship two-day using A

PROBLEM 15-3

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