What is the incremental holding cost when changing

Assignment Help Operation Management

Reference no: EM131866462

Your mid-sized wholesale company deals mostly in low cost commodity items. One particular product, dehydrated water, has a holding cost of only $1.36 per case.

You have been purchasing this amazing product for more than a year paying only $4.30 per case for standard shipping terms of 6 day delivery.

This vendor is now offering 2 day delivery for only $3.35 shipping costs per case.

What is the incremental holding cost when changing from 6 day service to 2 day service?

(Your answer should have three decimal places)

Reference no: EM131866462

Questions Cloud

How can we help facilitate effective development : How might the development of self-authorship in traditional-aged students differ from adult students ?

Conformity and individuality characteristics : What would be one method to satisfy peoples' both conformity and individuality characteristics through a product?

Prove sum of natural numbers digits is divisible by 3 : Prove that for every natural number n ? N such that 3|n, the sum of the digits of n is divisible by 3 - how can we be sure that it works for natural number

Different between gcc countries and the western countries : Do you believe the future trend would be different between GCC countries and the Western countries? Why or why not?

What is the incremental holding cost when changing : Your mid-sized wholesale company deals mostly in low cost commodity items. One particular product, dehydrated water, has a holding cost of only $1.36 per case.

Compose a substantive post that details a simple solution : Compose a substantive post that details a simple solution for the company's problem. The goal of the company is not to completely abandon the project

Compute the lower-of-cost-or-net realizable value : Compute the lower-of-cost-or-net realizable value valuation for the company's total inventory

How will or should this issue be resolved : How will or should this issue be resolved ( if need be)? What will happen next? What Actions should the key players take? Why?

Define challenges and opportunities in global markets : Direct marketing faces several challenges and opportunities in global markets. Several countries, such as Australia and Japan, have requirements for mandatory.

User Account

All Pages