Use the ground carrier and the air carrier

Assignment Help Operation Management

Reference no: EM131766549

You are shipping 160 diamonds to a customer located 2,000 miles away. The average value of each diamond is $1,050. You can ship via air for $360 and the diamonds will arrive in two days or you can ship via a specialty ground carrier for $130 and the diamonds will arrive in six days. You figure your inventory carrying cost is 17 percent. Your customer will immediately transfer funds to your bank account on receipt of the shipment.

What is your total cost if you use the ground carrier and the air carrier? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Total cost using air carrier

Total cost using ground carrier

Reference no: EM131766549

Questions Cloud

Disadvantage of implementing group technology in firm : Identify a disadvantage of implementing group technology in a firm:

What sales promotions should bestbuy use for insignia brand : What sales promotions should BestBuy use for the insignia brand? explain your answer.

Statement about water transportation mode : Identify a true statement about water transportation mode from the list below (only one):

Total shipping and transit inventory cost of the shipment : What will be the total shipping and transit inventory cost of the shipment? If the manager chose the above option, how much money would be saved or lost?

Use the ground carrier and the air carrier : What is your total cost if you use the ground carrier and the air carrier?

Product weighing-out trailer and cubing-out trailer : Explain the difference between a product “weighing-out” a trailer, and “cubing-out” a trailer. Provide an example of each.

Should organization adopt formal career development policies : Should organizations adopt formal career development policies and programs? How do these programs affect their ability to be flexible in terms of staffing?

Explain the importance of doing the business model canvas : Explain the importance of doing the business model canvas.

Mrp planning schedule showing gross and net requirements : Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates.

User Account

All Pages