What will be the total shipping and transit inventory cost

Assignment Help Operation Management

Reference no: EM131919083

Question: Richard's Sporting Goods needs to fill an online order for a gross (144) of hockey sticks. The manager is considering shipping the order by truck to the customer in Wisconsin, at a carrier charge of $75. The delivery will take five days and the order is paid on delivery (Richard's doesn't get paid until the sticks are received). The hockey sticks are valued at $50 for each stick and Richard's uses a 25 percent annual inventory carrying charge.

a. What will be the total shipping and transit inventory cost of the shipment?

b. If the shipment could be delivered in only 2 days at a cost of $100, should the manager do it? How much money would be saved or lost?

Reference no: EM131919083

Questions Cloud

Why is disclosure rule likely to benefit average consumer : Suppose the government is thinking of requiring pharmaceutical companies to print. Why is the new disclosure rule likely to benefit the average consumer?

Calculate the expected value of for a random sample : Data about the price of a round-trip ticket Atlanta-Barcelona, suggests that a plausible model, for X = price, is a population distribution having mean.

Write a C function that will calculate final prices : COMP1000 - UNIX AND C PROGRAMMING ASSIGNMENT QUESTIONS - Write a C function called calcPrices that will calculate final prices in a fishing/camping store

Explain why insurers ask student drivers about the grades : Consider the market for auto insurance. Explain why insurers ask student drivers about their grades.

What will be the total shipping and transit inventory cost : If the shipment could be delivered in only 2 days at a cost of $100, should the manager do it? How much money would be saved or lost?

Estimate the value of the standard error : The mean number of hours worked per week is 39.04, with a standard deviation of 11.51. The sample size is 83. Estimate the value of the standard error.

Who happily describe the characteristics of goods received : Advertising often features testimonials from satisfied customers, who happily describe the characteristics of the goods or services they received.

Why joining a fraternity or sorority might include elaborate : Explain why joining a fraternity or sorority might include elaborate or difficult rituals. Which is the more effective signal?

What is the profit the insurance company will make : The manufacturing representative is willing to ignore all other possible losses. If the insurance company charges $2,500 for the policy

User Account

All Pages