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A manager must make a decision on delivery alternatives. There are two carriers, A and B . Both offer a two - day rate. In

A manager must make a decision on delivery alternatives. There are two carriers, A and B. Both offer a two-day rate. In addition, A offers a three-day rate and a nine-day rate, and B offers a four-day rate and a seven-day 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 30 percent of unit cost, and each box has a cost of $150. Assume 365 days per year. Which delivery alternative would you recommend?
Carrier A Carrier B
Options Freight Cost Options Freight Cost
2 days $5302 days $600
3 days 4704 days 550
9 days 4207 days 480
Delivery alternative
Carrier A
(Click to select)
Carrier B
(Click to select)

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