$5/shut; import duty: 31/shirt transportation and storage usu. DILWL Which is the preferred option? What additional considerations might be relevant before malang a final decision? The traffic manager of XYZ electric has just received a rate reduction offer from a truching company for the shipment of fractional horse power motors to the company's field warehouse The proposal is a rate of $3 per hundred weight (cwt) if a minimum of 40,000 pounds is moved in each shipment. Currently shipments of about 20,000 pounds or more are moved at a rate of $5 per cut; if shipment size falls below 20.000 pounds, a rate of $ 9 per cwt applies. Should the company implement the new rate To help the traffic manager make a decision the following additional information has been gathered Operational descriptive Annual demand on warehouse Warehouse replenishment order size (current) Weight of each motor, crated Standard cost of motors in warehouse Stock replenishment order handling costs Inventory carrying costs as a percentage of average value of inventory on hand for a year Handling cost at warenouse Warehouse space Figures 6.000 motors per year 120 per order 200 pounds $200 per motor $15 per order 25 percent of the cost of motors $0.30 per cut unlimited $5/shut; import duty: 31/shirt transportation and storage usu. DILWL Which is the preferred option? What additional considerations might be relevant before malang a final decision? The traffic manager of XYZ electric has just received a rate reduction offer from a truching company for the shipment of fractional horse power motors to the company's field warehouse The proposal is a rate of $3 per hundred weight (cwt) if a minimum of 40,000 pounds is moved in each shipment. Currently shipments of about 20,000 pounds or more are moved at a rate of $5 per cut; if shipment size falls below 20.000 pounds, a rate of $ 9 per cwt applies. Should the company implement the new rate To help the traffic manager make a decision the following additional information has been gathered Operational descriptive Annual demand on warehouse Warehouse replenishment order size (current) Weight of each motor, crated Standard cost of motors in warehouse Stock replenishment order handling costs Inventory carrying costs as a percentage of average value of inventory on hand for a year Handling cost at warenouse Warehouse space Figures 6.000 motors per year 120 per order 200 pounds $200 per motor $15 per order 25 percent of the cost of motors $0.30 per cut unlimited