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Determine which delivery alternative would be most economical for 80 boxes of parts. Each box costs $150 and annual holding cost is 30 percent of
Determine which delivery alternative would be most economical for 80 boxes of parts. Each box costs $150 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 | $225 | |
Two-day | 195 | |
Six-day | 135 | |
Alternative (Click to select) Overnight Six-day Two-day
b. For what range of unit cost for a box would each delivery alternative be least costly?
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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