Reduce shipping rates to reflect the expense reduction

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In 2007-2008, the price of jet fuel and diesel fuel used by air and ground freight companies decreased dramatically. As the CEO of FEDED, you have been presented with the following proposals to deal with the situation A. Reduce shipping rates to reflect the expense reduction B. Increase the number of deliveries per day in some of the markets C. Make long term contracts to buy fuel at a fixed price for the next 3 years and lower shipping rates commensurate with the reduced cost. a) Evaluate each of these alternatives in context of the decision making models we studied in class b) What would be your recommendation based on a) above c) What incentives would you use to motivate your managers to implement your decisions?

Reference no: EM131000129

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