Question
a. Determine which delivery alternative would be most economical for 80 boxes of parts. Each box costs $240 and annual holding cost is 30 percent
a. Determine which delivery alternative would be most economical for 80 boxes of parts. Each box costs $240 and annual holding cost is 30 percent of cost. Assume 365 days per year. Freight costs are:
Alternative | Freight Cost (for all 80 boxes) | |
Overnight | $360 | |
Two-day | 312 | |
Six-day | 216 | |
Alternative (Click to select) Two-day Six-day Overnight
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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