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There is demand for 5,000 units that needs to be transported from Memphis, TN to Montreal, QC every year ( 365 days). The price of
There is demand for 5,000 units that needs to be transported from Memphis, TN to Montreal, QC every year ( 365 days). The price of each unit $1,000. The annual holding costs are 25% per unit and 7 days of safety stock is kept at destination for both modes. These are the modes of transportation available to you: a. Calculate the most economical mode of transportation by taking in account the annual freight and the in-transit holding cost. b. For what range of unit price would each mode the most economical
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