A manager must make a decision on delivery alternatives. There are two carriers, A and B. Both offer a two-day rate. In addition, A offers a three-day rate and a nine-day rate, and B offers a four-day rate and a seven-day rate. Three hundred boxes are to be delivered and the freight cost for the whole lot for each option is given below. Annual holding cost is 35 percent of unit cost, and each box has a cost of $130. Assume 365 days per year. Which delivery alternative would you recommend? Carrier A Options 2 days 3 days 9 days Carrier A Carrier B Freight Cost $580 520 480 Carrier B Options 2 days 4 days 7 days Freight Cost $570 540 500 Delivery alternative ✓Click to selecti # Two-day Three-day Nine-day
A manager must make a decision on delivery alternatives. There are two carriers, A and B. Both offer a two-day rate. In addition, A offers a three-day rate and a nine-day rate, and B offers a four-day rate and a seven-day rate. Three hundred boxes are to be delivered and the freight cost for the whole lot for each option is given below. Annual holding cost is 35 percent of unit cost, and each box has a cost of $130. Assume 365 days per year. Which delivery alternative would you recommend? Carrier A Options 2 days 3 days 9 days Carrier A Carrier B Freight Cost $580 520 480 Carrier B Options 2 days 4 days 7 days Freight Cost $570 540 500 Delivery alternative ✓Click to selecti # Two-day Three-day Nine-day
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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
Transcribed Image Text:A manager must make a decision on delivery alternatives. There are two carriers, A and B. Both offer a two-day
rate. In addition, A offers a three-day rate and a nine-day rate, and B offers a four-day rate and a seven-day rate.
Three hundred boxes are to be delivered and the freight cost for the whole lot for each option is given below.
Annual holding cost is 35 percent of unit cost, and each box has a cost of $130. Assume 365 days per
year. Which delivery alternative would you recommend?
Carrier A
Options
2 days
3 days
9 days
Carrier A
Carrier B
Freight
Cost
$580
520
480
Carrier B
Options
2 days
4 days
7 days
Freight
Cost
$570
540
500
Delivery alternative
✓Click to select)
D
Two-day
Three-day
Nine-day
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