Question
a. Determine which delivery alternative would be most economical for 95 boxes of parts. Each box costs $300 and annual holding cost is 20 percent
a. Determine which delivery alternative would be most economical for 95 boxes of parts. Each box costs $300 and annual holding cost is 20 percent of cost. Assume 365 days per year. Freight costs are: Alternative Freight cost (for all 95 boxes) Overnight $325 Two-day 295 Six-day 235
What's the alternative
1.Overnight
2. Two- day
3. Six day
b. For what range of unit cost for a box would each delivery alternative be least costly? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Overnight is cheapest if unit cost > $
Two-day delivery is cheapest if $ $ unit cost < $
Six-day delivery is cheapest if unit cost < $
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