Question
Locus Computer, based in California, is planning to manufacture its entry into the tablet space, the Lpad, in Taiwan. One option is to ship Lpads
Locus Computer, based in California, is planning to manufacture its entry into the tablet space, the Lpad, in Taiwan. One option is to ship Lpads via ocean carrier. It is estimated that the lead time will be 3.5 months. Alternatively, the company can use air shipments which only have a lead time of 1/4 months. Annual holding costs are estimated to be 40% of the value of the product. As a percentage of the value of the product, how much would air shipments save in holding costs if you only consider pipeline inventory and ignore the cost of air shipments? Give the anwer in percentage, to digits after the decimal points. Do not write percentage '%' symbol. For example, if the answer is 99.978%, just write 99.979. SHOW WORK
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