Dilemma of speed versus costs in the supply chain

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Organisations are often confronted by the dilemma of speed versus costs in the supply chain. Xtra Power wants to transport its goods (boxes of washing powder) from Durban to Cape Town. Table 1 provides information on cargo value, transport costs and times to deliver. Using this information, determine how shipments should be made. Table 1 Value of cargo (rand) 2 500 000 Cost of transporting by road 65 000 Cost of transporting by rail 45 000 Duration (in days) road 5 Duration (in days) rail 13 % Holding cost of inventory 25%.

Reference no: EM132221776

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