what is your most economical plan?
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
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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How do you do alternative ve 2?
![Your options for shipping $100,000 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 30 days at
a cost of $3,800, or (2) truck the parts to LOs Angeles and then ship at a total cost of $4,800. The second option will take only 20 days. You
are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year.
If you have a third option and it costs only $4,000 and also takes 20 days, what is your most economical plan? Assume 365 days per year.
The daily holding cost of Alternative 1 is $ 82.19 . (Enter your response rounded to two decimal places.)
The daily cost of faster shipping with Alternative 2 is $32.19. (Enter your response rounded to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b29fba6-eb9e-418e-8a6d-3991cb107cb2%2F76e454a3-62aa-41d7-9f3d-c6e6672eddb6%2Fz1n5tl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your options for shipping $100,000 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 30 days at
a cost of $3,800, or (2) truck the parts to LOs Angeles and then ship at a total cost of $4,800. The second option will take only 20 days. You
are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year.
If you have a third option and it costs only $4,000 and also takes 20 days, what is your most economical plan? Assume 365 days per year.
The daily holding cost of Alternative 1 is $ 82.19 . (Enter your response rounded to two decimal places.)
The daily cost of faster shipping with Alternative 2 is $32.19. (Enter your response rounded to two decimal places.)
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