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A company is the logistics vendor for B Company. B has daily shipments of a power-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is 250,000. A has two options. 1. Its standard 2-day shipment. 2. a subcontractor who will team drive overnight with an effective delivery of 1 day. The extra driver costs 175. B's holding cost is 35% annually for this kind of inventory
Please explain in detail.
Question 1. which option is more economical 2. what production issues are not included in the data presented?
Summary of chapter 2, reading 2.1. "ONE PHILOSOPHER'S APPROACH TO BUSINESS ETHICS" in a book MORAL ISSUES IN BUSINESS 12TH EDITION by William h. Shaw and Vincent Barry.
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