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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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