Question: Problem 11.10 (page 443 in the text)

a. 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.

i. Which option is more economical

ii. What production issues are not included in the data presented