Determining the economical plan

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Reference no: EM131805203

Your options for shipping $99, 860 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 32 days at a cost of $3, 580, or (2) truck the parts to Los Angeles and then ship at a total cost of $5, 050. The second option will take only 22 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year. If you have a third option and it costs only $4, 150 and also takes 22 days, what is your most economical plan? The daily holding cost of Alternative 1 is $82.08 (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 2 is $ (Enter your response rounded to two decimal places.)

Reference no: EM131805203

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