Supply Chain Management: two-day freight, and five-day freight alternatives
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Supply Chain Management: two-day freight, and five-day freight alternatives
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Al Baik must ship replacement parts for their ovens, and the supply chain manager must choose between two shipping alternatives: two-day freight, and five-day freight. Using five-day freight saves 750 Riyal (SAR), but the primary consideration is holding cost, which is 38 Riyal per unit per year. Al Baik must ship 2000 units. In a 4-5-page paper, which alternative would you recommend to the supply chain manager and why?
