[Essay Help]: Operation Management 3.

Operation Management 3.. Problem 15-1

A manager at Strateline Manufacturing must choose between two shipping alternatives: two-day freight and five-day freight. Using five-day freight would cost \$147 less than using two-day freight. The primary consideration is holding cost, which is \$10 per unit a year. 2,760 items are to be shipped.

Which alternative would you recommend? (Round your intermediate calculations to 2 decimal places.)

[removed] Two-day freight
[removed] Five-day freight
Problem 15-3

A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for \$502 and B for \$520. In addition, A offers a three-day rate of \$470 and a nine-day rate of \$401, and B offers a four-day rate of \$455 and a seven-day rate of \$436. Annual holding costs are 39 percent of unit price. Four hundred and ten boxes are to be shipped, and each box has a price of \$144. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the “\$” sign in your response.)

A

B

Option Cost Option Cost
2 days \$ [removed] 2 days \$ [removed]
3 days \$ [removed] 4 days \$ [removed]
9 days \$ [removed] 7 days \$ [removed]

[removed] Ship two-day using A
[removed] Ship three-day using A
[removed] Ship two-day using B
[removed] Ship four-day using B
[removed] Ship seven-day using B

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Operation Management 3.

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