Management on controlling inventory carrying costs

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Reference no: EM131750753

1. The table below provides shipping rates for packages using next day (1-day) air or 5-day ground service options. The rates vary according to the weight of the package. Suppose you have a package weighing 15 pounds that needs to be shipped. The value of the material is $10,000 and the annual inventory holding rate is 40 percent of the product value. What is the carrier cost if you use the ground carrier? Check Example 11-1, 11-2 or the second example from the solved problems.

Weight 5-Day Ground

1-5 lbs. $7.10

6-10 lbs. $8.45

11-15 lbs. $11.15

16-20 lbs. $13.45

2. Discuss the impact of Inbound Transportation Management on controlling inventory carrying costs.

Reference no: EM131750753

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