a. Determine which delivery alternative would be most economical for 80 boxes of parts. Each box costs
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a. Determine which delivery alternative would be most economical for 80 boxes of parts. Each box costs $200 and annual holding cost is 30 percent of cost. Assume 365 days per year. Freight costs are:
Alternative Freight Cost (for all 80 boxes)
Overnight ..................................................... $300
Two-day ........................................................ 260
Six-day .......................................................... 180
b. For what range of unit cost for a box would each delivery alternative be least costly?
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Operations Management
ISBN: 9781259270154
6th Canadian Edition
Authors: William J Stevenson, Mehran Hojati, James Cao
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