Homework Help: Operations management - Business

Posted by Nora on Monday, January 12, 2009 at 9:00am.

Determine which shipping alternative would be most economical to ship 80 boxes of parts when each box has a price of $200 and holding costs are 30 percent of price, given this shipping information: overnight, $300, two-day, $260, six-day, $180.

Operations management - Business - bobpursley, Monday, January 12, 2009 at 10:01am
I am wondering of your holding costs are per day or not dependent on time. It makes a big difference.

Assuming holding costs are independent of time during shipping. on a per box price..
overnight: 300
two day: 260+60
six day: 180+60
which indicates six day shipping

Assuming holding costs are per day costs
overnite: 300
two day:260+120
six day:180+360
which indicates overnite.

I hope I answered your question.
Operations management - Business - Nora, Monday, January 12, 2009 at 1:21pm
Thank you very much
i think its more likely to be dependent on time, but aren't we supposed to consider $60 x 80 boxes??

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