If you have a third option for the data in Problem( Your options for shipping $100,000 of machine partsfrom Baltimore to Kuala Lumpur, Malaysia, are ( I) use a shipthat will take 30 days at a cost of $3,800 or (2) truck the pa rts toLos Angeles and then ship at a total cost of $4,800. The secondoption will take only 20 days. You are paid via a Jetter of creditthe day the parts arrive. Your holding cost is estimated at 30%of the value per year.a) Which option is more economical?b) What customer issues are not included in the data presented? )and it costs only $4,000 and also takes 20 days, what is your most economical plan?

If you have a third option for the data in Problem( Your options for shipping $100,000 of machine partsfrom Baltimore to Kuala Lumpur, Malaysia, are ( I) use a shipthat will take 30 days at a cost of $3,800 or (2) truck the pa rts toLos Angeles and then ship at a total cost of $4,800. The secondoption will take only 20 days. You are paid via a Jetter of creditthe day the parts arrive. Your holding cost is estimated at 30%of the value per year.a) Which option is more economical?b) What customer issues are not included in the data presented? )and it costs only $4,000 and also takes 20 days, what is your most economical plan?

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

ChapterC: Cases

Section: Chapter Questions

Problem 5.2SB

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