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Use the data in the bellow table to answer this question. A transportation manager must ship orders of materials weighing three pounds each to destinations in each of the seven zones listed in the table. The daily inventory holding rate is $7.50 per day for all orders. The manager has decided to use next day air service for all shipments. Would you agree that this is the right course of action? Why, or why not?
Table of Shipping Rates
Next Day Service Weight
Domestic Zones
1
2
3
4
5
6
7
1 Lbs.
$ 16.25
$ 19.25
$ 22.75
$ 24.75
$ 27.00
$ 28.25
$ 29.00
$ 17.25
$ 20.75
$ 25.50
$ 27.75
$ 30.25
$ 31.25
$ 32.00
$ 19.00
$ 21.75
$ 30.50
$ 33.50
$ 34.75
$ 35.50
$ 20.00
$ 31.00
$ 36.50
$ 37.75
$ 38.50
$ 21.25
$ 24.25
$ 36.25
$ 39.50
$ 40.75
$ 41.75
$ 22.00
$ 25.25
$ 36.00
$ 39.00
$ 42.75
$ 44.00
$ 45.00
$ 42.00
$ 46.00
$ 47.00
$ 48.25
8
$ 23.75
$ 41.00
$ 44.75
$ 49.25
$ 50.25
$ 51.25
9
$ 24.50
$ 29.75
$ 43.75
$ 47.50
$ 52.50
$ 53.75
$ 54.50
10
$ 46.25
$ 55.25
$ 56.75
$ 57.75
11
$ 26.25
$ 32.50
$ 48.75
$ 52.75
$ 58.00
$ 60.00
$ 60.75
12
$ 55.50
$ 63.00
$ 63.75
13
$ 63.25
$ 65.75
$ 66.50
14
$ 28.50
$ 55.75
$ 60.50
$ 68.50
$ 69.25
15
$ 29.50
$ 37.50
$ 68.25
$ 70.75
$ 72.00
Ground Service Weight
Domestic Zones Transit Time in Days
$ 4.75
$ 4.90
$ 5.25
$ 5.35
$ 5.65
$ 5.70
$ 5.85
$ 4.85
$ 5.15
$ 5.80
$ 6.25
$ 6.40
$ 6.80
$ 5.00
$ 5.40
$ 6.00
$ 6.70
$ 6.90
$ 7.55
$ 5.60
$ 6.30
$ 6.60
$ 7.10
$ 7.30
$ 8.05
$ 6.95
$ 7.40
$ 7.75
$ 8.55
$ 5.55
$ 6.75
$ 7.20
$ 7.65
$ 8.85
$ 5.75
$ 6.15
$ 7.45
$ 7.95
$ 8.35
$ 9.25
$ 6.35
$ 7.60
$ 8.25
$ 8.75
$ 9.90
$ 6.20
$ 6.55
$ 7.25
$ 7.80
$ 8.45
$ 10.55
$ 8.00
$ 8.80
$ 11.25
$ 9.20
$ 10.60
$ 12.05
$ 7.70
$ 9.60
$ 11.35
$ 12.95
$ 7.00
$ 7.35
$ 7.85
$ 8.65
$ 10.05
$ 13.80
$ 7.15
$ 12.75
$ 14.65
$ 8.15
$ 9.05
$ 11.15
$ 13.45
$ 15.55
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