Problem 11-6 (Algo) Richard's Sporting Goods needs to fill an online order for 150 hockey sticks. The manager is considering shipping the order by truck to the customer in Wisconsin, at a carrier charge of $70. The delivery will take five days and the order is paid on delivery (Richard's doesn't get paid until the sticks are received). The hockey sticks are valued at $50 for each stick and Richard's uses a 30 percent annual inventory carrying charge. a. What will be the total shipping and transit inventory cost of the shipment? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.) Transit inventory cost 0.21 Total cost 2$ 100.80 b-1. If the shipment could be delivered in only 2 days at a cost of $95, then what will be the total shipment cost? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Total cost 107.30
Problem 11-6 (Algo) Richard's Sporting Goods needs to fill an online order for 150 hockey sticks. The manager is considering shipping the order by truck to the customer in Wisconsin, at a carrier charge of $70. The delivery will take five days and the order is paid on delivery (Richard's doesn't get paid until the sticks are received). The hockey sticks are valued at $50 for each stick and Richard's uses a 30 percent annual inventory carrying charge. a. What will be the total shipping and transit inventory cost of the shipment? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.) Transit inventory cost 0.21 Total cost 2$ 100.80 b-1. If the shipment could be delivered in only 2 days at a cost of $95, then what will be the total shipment cost? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Total cost 107.30
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...
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![Problem 11-6 (Algo)
Richard's Sporting Goods needs to fill an online order for 150 hockey sticks. The manager is considering shipping the order by truck to
the customer in Wisconsin, at a carrier charge of $70. The delivery will take five days and the order is paid on delivery (Richard's
doesn't get paid until the sticks are received). The hockey sticks are valued at $50 for each stick and Richard's uses a 30 percent
annual inventory carrying charge.
a. What will be the total shipping and transit inventory cost of the shipment? (Use 365 days in a year. Do not round intermediate
calculations. Round your answers to 2 decimal places.)
Transit inventory cost
24
0.21
Total cost
2$
100.80
b-1. If the shipment could be delivered in only 2 days at a cost of $95, then what will be the total shipment cost? (Use 365 days in a
year. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Total cost
107.30
Activate
Go to Settir](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40482b8a-8911-4b8e-809d-1db75f95960a%2F5cfc6766-376f-4305-9a49-82eb3da3dec9%2F2etciza_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 11-6 (Algo)
Richard's Sporting Goods needs to fill an online order for 150 hockey sticks. The manager is considering shipping the order by truck to
the customer in Wisconsin, at a carrier charge of $70. The delivery will take five days and the order is paid on delivery (Richard's
doesn't get paid until the sticks are received). The hockey sticks are valued at $50 for each stick and Richard's uses a 30 percent
annual inventory carrying charge.
a. What will be the total shipping and transit inventory cost of the shipment? (Use 365 days in a year. Do not round intermediate
calculations. Round your answers to 2 decimal places.)
Transit inventory cost
24
0.21
Total cost
2$
100.80
b-1. If the shipment could be delivered in only 2 days at a cost of $95, then what will be the total shipment cost? (Use 365 days in a
year. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Total cost
107.30
Activate
Go to Settir
![b-1. If the shipment could be delivered in only 2 days at a cost of $95, then what will be the total shipment cost? (Use 365 days in a
year. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Total cost
2$
107.30
b-2. If the manager chose the above option, how much money would be saved or lost? (Round your answer to 2 decimal places.)
If the manager chose this option, the company would](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40482b8a-8911-4b8e-809d-1db75f95960a%2F5cfc6766-376f-4305-9a49-82eb3da3dec9%2Fhwgzcwf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:b-1. If the shipment could be delivered in only 2 days at a cost of $95, then what will be the total shipment cost? (Use 365 days in a
year. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Total cost
2$
107.30
b-2. If the manager chose the above option, how much money would be saved or lost? (Round your answer to 2 decimal places.)
If the manager chose this option, the company would
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