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The table below provides shipping rates for packages using UPS next day alr or ground service options. The rates vary according to both the weight
The table below provides shipping rates for packages using UPS next day alr or ground service options. The rates vary according to both the weight of the package and the distance of the shipment (larger numbered zones are farther away). Note that the zone number also Indlcates the number of days required to dellver a package using ground service. A transportation manager must ship orders of materlals weighing ten pounds each to destinations in each of the seven zones Iisted in the table. The daIly inventory holding rate is $8.75 per day for all orders. The manager has decided to use next day alr service for all shipments. a. Calculate the additional shipping and transit inventory cost using the alr and ground transportations. (Negative answers should be Indicated by a minus sign. Leave no cells blank - be certaln to enter "0" wherever required. Round your answers to 2 decimal places.) b. Considering all shipments combined, is the decision to switch to alr shipping cost effective? Yes No The table below provides shipping rates for packages using UPS next day alr or ground service options. The rates vary according to both the weight of the package and the distance of the shipment (larger numbered zones are farther away). Note that the zone number also Indlcates the number of days required to dellver a package using ground service. A transportation manager must ship orders of materlals weighing ten pounds each to destinations in each of the seven zones Iisted in the table. The daIly inventory holding rate is $8.75 per day for all orders. The manager has decided to use next day alr service for all shipments. a. Calculate the additional shipping and transit inventory cost using the alr and ground transportations. (Negative answers should be Indicated by a minus sign. Leave no cells blank - be certaln to enter "0" wherever required. Round your answers to 2 decimal places.) b. Considering all shipments combined, is the decision to switch to alr shipping cost effective? Yes No
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