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problem 15-3

3.
value:

6.00 points
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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.)

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A

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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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[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

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