Business, 10.05.2020 07:57 ashliemallen

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 ship- ment is $250,000. Monczka-Trent has two options:
(1) its stand- ard 2-day shipment or
(2) a subcontractor who will team drive overnight with an effective delivery of one day. The extra driver costs $175. Hadfield’s holding cost is 35% annually for this kind of inventory.
a) Which option is more economical?
b) What production issues are not included in the data presented?

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Monczka-Trent Shipping is the logistics vendor for Handfield Manufacturing Co. in Ohio. Handfield ha...

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