A manager must make a decision on delivery alternatives. There are two shippers, A and B. Both

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A manager must make a decision on delivery alternatives. There are two shippers, A and B. Both offer a two-day rate. In addition, A offers a three-day rate and a nine-day' rate, and B offers a four-day rate and a seven-day rate. Three hundred boxes are to be delivered and tire freight cost for the whole lot for each option are given below. Annual holding cost is 35 percent of unit cost, and each box has a cost of $140. Which delivery alternative would you recommend?

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Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

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