Asked by Camilla Fernandez on Apr 24, 2024
A shipment of parts valued at $920,000 needs to be shipped from Prince George, BC to Flin Flon, MB. They could be shipped by rail, taking 18 days at a cost of $1,900, or by truck, taking 6 days at a cost of $8,140. The annual holding cost rate for this type of item has been estimated at 19%. What option is more economical?
Holding Cost Rate
The expense associated with storing unsold goods or materials over a period.
Prince George
A city in British Columbia, Canada, known for its natural beauty and as an economic hub of the region.
Flin Flon
A mining city located on the boundary of Manitoba and Saskatchewan in Canada, known primarily for its copper and zinc resources.
- Comprehend the method for determining the overall expense of shipping, encompassing transportation and storage costs.
- Examine and contrast various delivery alternatives to identify the least expensive option.
- Implement the principle of the yearly holding cost rate in practical shipping situations.
Learning Objectives
- Comprehend the method for determining the overall expense of shipping, encompassing transportation and storage costs.
- Examine and contrast various delivery alternatives to identify the least expensive option.
- Implement the principle of the yearly holding cost rate in practical shipping situations.