Explain shipping alternative

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Reference no: EM135091

A manager must make a decision of shipping. There are two shippers, A and B. Both offer a two-day rate: A for $500 and B for $525. In addition, A offers a three-day rate of $460 and a nine-day rate of $400, and B offers a four-day rate of $450 and a seven-day rate of $410. Annual holding costs are 35 percent of unit price. Three hundred boxes are to be shipped, and each box has a price of $140. Which shipping alternative would you recommend? Explain. Please show work and formulas.

Reference no: EM135091

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