Supply Chain Management for shipping machine parts
Not what you're looking for?
Your options for shipping $100,000 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are
(1) use a ship that will take 30 days at a cost of $3,800, or
(2) truck the parts to Los Angeles and then ship at a total cost of $4,800.
The second option will only take 20 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.
a) Which option is more economical?
b) What customer issues are not included in the data presented?
Purchase this Solution
Solution Summary
The supply chain management for shipping machine parts are examined.
Solution Preview
1. Total cost of option 1 = 3800 + 30000/360*10 =4622 which is less than ...
Purchase this Solution
Free BrainMass Quizzes
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.