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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Problem 15-3
-2-2 http://ezto.mheduc A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for
$500 and B for $525. In addition, A offers a three-day rate of $460 and a nine-day rate of $400, and B offers a fourday rate of $450 and a seven-day rate of $410. Annual holding costs are 35 percent of unit price. Three hundred
boxes are to be shipped, and each box has a price of $140. Which shipping alternative would you recommend?
(Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the
"$" sign in your response.) A
Option
2 days
3 days
9 days B
Cost
$
$
$ Ship two-day using A
Ship three-day using A
Ship four-day using B
Ship two-day using B
Ship nine-day using A
Ship seven-day using B Option
2 days
4 days
7 days Cost
$
$
$
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