Your Options For Shipping 96070 Of Machine Parts

Question

Your options for shipping ​$96,070 of machine parts from Baltimore to Kuala​ Lumpur, Malaysia, ar…

Your options for shipping ​$96,070 of machine parts from
Baltimore to Kuala​ Lumpur, Malaysia, are​ (1) use a ship that will
take 30 days at a cost of ​$3 390

​,or​ (2) truck the parts to Los Angeles and then ship at a
total cost of ​$5 000

The second option will take only 22days. You are paid via a
letter of credit the day the parts arrive. Your holding cost is
estimated at 30​% of the value per year.

If you have a third option and it costs only ​$4 390 and also
takes 22 ​days, what is your most economical​ plan?

The daily holding cost of Alternative 1 is ​$ ______

Cost of Saving one day: ____

Cost of Saving one day: ____

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