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How should shipments be made and why

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Problem 1: Phil Carter, President of Carter Computer Components Corp. has the option of shipping computer transformers from its Singapore plant via container ship or airfreight. The typical shipment has a value of $75,000. A container ship takes 24 days and costs $5,000; airfreight takes 1 day and costs $8,000. Holding cost is estimated to be 40% or $82.19 per day in either case. How should shipments be made and why?

Reference no: EM132803054

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