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QUESTION 2:

A shipment of new bicycles needs to go from Johannesburg to a warehouse in Durban. The value of a bicycle R1,700, and the holding cost is 35% per year. One airfreight carrier can ship the bicycles 1 day faster than its competitor, at an extra cost of R30.00.

2.1. Which carrier should be selected? Explain your answer.

2.2. How much savings can be made from the selected carrier.

2.3. What should the procurement specialist bear in mind when it comes to contract terms

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