A company manufactures parts for machine tools in North America and ships them

to Southeast Asia for assembly and sale in the local market. The components are

shipped by sea, transit time averages six weeks, and the shipping costs $$1000$ per

shipment. The company is considering moving the parts by air at an estimated cost

of $$7500$; the shipment takes two days to get there. If inventory in transit for the

shipment costs $$150$ per day, should they ship by air?