Answer:
The supplier should ship 2 days using B as it yields the lowest cost.
Explanation:
Base on the scenario been described in the question, we can use the following method to solve the question
Units 410
Unit price $ 156.00
total cost of product to be shipped = (Unit price * Units) = 410*156 $ 63,960.00
Holding cost = 39% ,39%*63960 $ 24,944.400
Holding cost for 1 day = 24944.40/365 $ 68.341
Shipper A
Alternative Shippping cost Holding days Holding days * Holding cost for 1 day Total cost = Shipping + holding cost
2-Day $ 538.00 2 $ 136.682 $ 674.68
3 day $ 472.00 3 $ 205.022 $ 677.02
9 day $ 406.00 9 $ 615.067 $ 1,021.07
Shipper b
Alternative Shippping cost Holding days Holding days * Holding cost for 1 day Total cost = Shipping + holding cost
2-Day $ 529.00 2 $ 136.682 $ 665.68
4 day $ 455.00 4 $ 273.363 $ 728.36
7 Day $ 428.00 7 $ 478.386 $
