Holding costsyour options for shipping 100000 of machine

Assignment Help Business Management

Reference no: EM13369656

Holding Costs

Your options for shipping #100,000 of machine parts from Baltimore to Kuala Lumpur, Malaysia are (1) use a ship that will take 30 days at a cost of $3,800, or (2) truck the parts to Los Angeles and then ship at a total cost of $4,800. The second option will take only 20 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.

a. Which option is more economical?
b. What customer issues are not included in the data presented.

Reference no: EM13369656

Questions Cloud

Current value of operationssuppose a companys projected : current value of operationssuppose a companys projected free cash flow for next year is 500 million and it is expected

Processs of job and recruitmentfirst of all it has to be : processs of job and recruitmentfirst of all it has to be seen why the job exists what are the needs of the job

Hospitality industry experience and managementselect an : hospitality industry experience and managementselect an organization in the hospitality industry and describe a

Need for job evaluationin every organization different : need for job evaluationin every organization different employees perform different tasks necessary to carry on the

Holding costsyour options for shipping 100000 of machine : holding costsyour options for shipping 100000 of machine parts from baltimore to kuala lumpur malaysia are 1 use a ship

Decision making tools using the right analysis tool will : decision making tools using the right analysis tool will compensate for inexperienced managers. agree?subject

Role of creativity and training in creativitycreativity in : role of creativity and training in creativitycreativity in the workplace is examinied and the role of the screening of

Business protocolsexplain why should a business have the : business protocolsexplain why should a business have the same protocols when a business has multiple offices in a

Management changewhat are the advantages and disadvantages : management changewhat are the advantages and disadvantages of introducing a new range of payment technologies to an

User Account

All Pages