What is most economical? plan

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Reference no: EM132808825

Your options for shipping ?$98,060 of machine parts from Baltimore to Kuala? Lumpur, Malaysia, are? (1) use a ship that will take 32 days at a cost of ?$3,400?, or? (2) truck the parts to Los Angeles and then ship at a total cost of ?$5,130. The second option will take only 22 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.

Problem 1: If you have a third option and it costs only ?$4,450 and also takes 22 ?days, what is your most economical? plan?

Reference no: EM132808825

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