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Be sure to show the calculations that helped in your decision-making.

A manager at Strateline Manufacturing must chose between two shopping Alternatives; Two-day freight and five-day. Using five-day freight would cost $135 less than using two-day freight. The primary consideration is holding cost, which is $10 per unit a year. 2000 items are to be shipped. Which alternative would you recommend? Explain.

  • math -

    (10/365)(3)(2000) = ?

    I'm sure you can take it from here.

  • math -

    $10*2000=$20000*(3/365)
    =$164

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