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??

- Operations management - Business -
**REAHLEE**, Saturday, July 25, 2015 at 10:27am
P=?

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