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2. A manager must decide on delivery alternatives. There are two carriers, A and B. Both offer a two-day rate. in addition, A offers a

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2. A manager must decide on delivery alternatives. There are two carriers, A and B. Both offer a two-day rate. in addition, A offers a 3-day rate and a 9-day rate, and B offers a 4-day rate and a 7day rate. Three hundred boxes are to be delivered and the freight cost for the whole lot for each option is given below. Annual holding cost is 35 percent of unit cost, and each box has a cost of $140. Assume 365 days per year. Which delivery alternative would you recommend? Shipper A Shipper B Option Freight Cost Option Freight Cost 2 days $500 2 days $525 3 days $460 4 days $450 9 days $400 7 days $410

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