[See] 11.10 (page 443 in the text) Monczka Trent shipping is the logistics vendor for Handfield Manufacturing Co. in ohio. Handfield has daily shipments
Question: Problem 11.10 (page 443 in the text)
- Monczka Trent shipping is the logistics vendor for Handfield Manufacturing Co. in ohio. Handfield 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. Monczka-Trent has two options. (1) its standard 2-day shipment or (2) a subcontractor who will team drive overnight with an effective delivery of 1 day. The extra driver costs $175. Handfield’s holding cost is 35% annually for this kind of inventory.
- Which option is more economical
- What production issues are not included in the data presented
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