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
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question
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
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
Expert Solution
steps

Step by step

Solved in 3 steps with 10 images

Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.