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A company would like to calculate a cost-to-cost trade-off analysis for the following scenario:
Cost to ship by rail =$0.088 per unit per kilometer shipped
Cost to ship by truck =$0.122 per unit per kilometer shipped
Number of units to be shipped= 111,000
Cost of delay due to slower shipping time if rail is used = $10,500
Provide a cost-to-cost trade-off calculation for the rail-versus-truck alternative.
Based on the cost-to-cost trade-off calculations, the company should ship by ___ at a total cost (including any delay costs, where applicable) of $ ?
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