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: ____
Solutions
Expert Solution
Gireo Product cost ns,070 ho; of days 3o days зех 96,070 /00 ptien : – 3,390+30×78.96 5758-80 option 2 hldig lest for za days Total shpng cost 2. 5000 + 22x 78.6 $6737.12. Shopping cos t+ Holding cơst dir 22days 439o 22 X78.9% opt on 3 : :612712 plan
Submit Your Answer
[contact-form-7 404 "Not Found"]