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O ship two-day using B O ship three-day using A O ship four-day using B O ship seven-day using B O ship two-day using A

O ship two-day using B O ship three-day using A O ship four-day using B O ship seven-day using B O ship two-day using A

Practical Management Science
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...
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**Shipping Decision Problem:** A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $510, and B for $527. In addition, A offers a three-day rate of $478 and a nine-day rate of $409, and B offers a four-day rate of $459 and a seven-day rate of $420. Annual holding costs are 35 percent of unit price. Three hundred and eighty boxes are to be shipped, and each box has a price of $148. Which shipping alternative would you recommend? *(Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.)* **Table of Shipping Options:** - **Shipper A:** - 2 days: (Cost not specified) - 3 days: (Cost not specified) - 9 days: (Cost not specified) - **Shipper B:** - 2 days: (Cost not specified) - 4 days: (Cost not specified) - 7 days: (Cost not specified) **Graph Explanation:** The chart provided is a table with two columns representing two shippers, A and B, and their respective shipping options and costs for different shipping durations. However, the specific costs are not visible in the table image. **Options for Recommendation:** - Ship two-day using B - Ship three-day using A - Ship four-day using B - Ship seven-day using B - Ship two-day using A The manager should use the provided costs and the annual holding cost percentage to calculate the most cost-effective shipping option.
Transcribed Image Text:**Shipping Decision Problem:** A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $510, and B for $527. In addition, A offers a three-day rate of $478 and a nine-day rate of $409, and B offers a four-day rate of $459 and a seven-day rate of $420. Annual holding costs are 35 percent of unit price. Three hundred and eighty boxes are to be shipped, and each box has a price of $148. Which shipping alternative would you recommend? *(Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.)* **Table of Shipping Options:** - **Shipper A:** - 2 days: (Cost not specified) - 3 days: (Cost not specified) - 9 days: (Cost not specified) - **Shipper B:** - 2 days: (Cost not specified) - 4 days: (Cost not specified) - 7 days: (Cost not specified) **Graph Explanation:** The chart provided is a table with two columns representing two shippers, A and B, and their respective shipping options and costs for different shipping durations. However, the specific costs are not visible in the table image. **Options for Recommendation:** - Ship two-day using B - Ship three-day using A - Ship four-day using B - Ship seven-day using B - Ship two-day using A The manager should use the provided costs and the annual holding cost percentage to calculate the most cost-effective shipping option.
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