Nubia textile shop in Egypt imports one of its products from China. The transportation time is currently 40 days, the cost per unit is E£35, and the holding cost of the product is 30% annually. Because of the long shipping time, the manager is evaluating the possibility of supplying the product from Turkey which will save 24 days in shipment, but the cost will remain the same.

a) What is the product cost plus holding cost per unit from China?

b) If the product cost in Turkey is x, what is the product cost plus holding cost per unit when shipping from Turkey (as a function of x)?

c) What is the value of x to make Turkey a preferable sourcing option than China? lop6