Question

A manager must make a decision on shipping. there are two shippers, a and

b. both offer a two-day rate: a for $526 and b for $532. in addition, a offers a three-day rate of $470 and a nine-day rate of $411, and b offers a four-day rate of $459 and a seven-day rate of $412. annual holding costs are 34 percent of unit price. three hundred and fourty boxes are to be shipped, and each box has a price of $148. which shipping alternative would you recommend

Answer 1

I would recommend the 7 day rate of $412. Out of the options, the 7 day rate for $412, is the best value for the shipping time and money being spent. The only issue that could come into play that is not listed in the question, is the desired shipping time frame that the company would like to achieve.