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In: Operations Management

Your options for shipping ?$101 comma 040 of machine parts from Baltimore to Kuala? Lumpur, Malaysia,...

Your options for shipping ?$101 comma 040 of machine parts from Baltimore to Kuala? Lumpur, Malaysia, are? (1) use a ship that will take 29 days at a cost of ?$3 comma 640?, or? (2) truck the parts to Los Angeles and then ship at a total cost of ?$4 comma 670. The second option will take only 22 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30?% of the value per year. ?a) ? Alternative 2 Alternative 1 is more? economical, with a daily holding cost of ?$ nothing. ?(Enter your response rounded to two decimal? places.)

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Expert Solution

a) Alternative 1 is more economical with a daily holding cost of $2408.35

keosha answered 9 months ago
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