Your options for shipping $103,810 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 29 days at a cost of $3,670, or (2) truck the parts to Los Angeles and then ship at a total cost of $4,970. The second option will take only 18 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. If you have a third option and it costs only $4,030 and also takes 18 days, what is your most economical plan? The daily holding cost of Alternative 1 is $ (Enter your response rounded to two decimal places.)

Your options for shipping $103,810 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 29 days at a cost of $3,670, or (2) truck the parts to Los Angeles and then ship at a total cost of $4,970. The second option will take only 18 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. If you have a third option and it costs only $4,030 and also takes 18 days, what is your most economical plan? The daily holding cost of Alternative 1 is $ (Enter your response rounded to two decimal places.)

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Description: Your options for shipping $103,810 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 29 days at a cost of $3,670, or (2)truck the parts to Los Angeles and then ship at a total cost of $4,970. The second opt

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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