Question
Monczka-Trent Shipping is the logistics vendor for Handfield Manufacturing Co. in Ohio. Handfield has daily shipments of apower-steering pump from its Ohio plant to an
Monczka-Trent Shipping is the logistics vendor for Handfield Manufacturing Co. in Ohio. Handfield has daily shipments of apower-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is $270,990. Monczka-Trent has twooptions: (1) its standard 2-day shipment or(2) a subcontractor who will team drive overnight with an effective delivery of 1 day. The extra driver costs $180. Handfield's holding cost is 35% annually for this kind of inventory.
A. (option 1 or option 2) is moreeconomical, with a daily cost of $? (Enter response as whole number).
B. What production issues are not included in the data presented?
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