Problem 11-1 Richard\'s Sporting Goods needs to fill an online order for 162 hoc

Question

Problem 11-1 Richard's Sporting Goods needs to fill an online order for 162 hockey sticks. The manager is considering shipping the order by truck to the customer in Wisconsin, at a carrier charge of $100. The delivery will take five days and the order is paid on delivery (Richard's doesnt get paid until the sticks are received) The hockey sticks are valued at $80 for each stick and Richard's uses a 24 percent annual inventory carrying charge a. What will be the total shipping and transit inventory cost of the shipment? (Use 365 days in a year. Do not round intermediate calculations.Round your answers to 2 decimal places.) Transit inventory cost Total cost b-1·lf the ship ment could be dahered in only 2 days at a cost of $150, then what wil be the total shipment cost? Use 365 days in Round your answer to 2 decimal places.) year. Do not round intermediate calculations. b-2. If the manager chose the above option, how much money would be saved or lost? (Round your answer to 2 decimal places)

Explanation / Answer

A K Carrier cost 100 $ Lead time 5 days TU Total units 162 P= TU*80 Product cost @80 12960 $ H Holding cost for 5 days 42.60822 $ P*0.24*5/365 TI=P+H Transit Inventory cost 13002.61 $ TI+K Total cost 13102.61 $ B1 K Carrier cost 150 $ Lead time 2 days TU Total units 162 P= TU*80 Product cost @80 12960 $ H Holding cost for 5 days 17.04329 $ P*0.24*2/365 TI=P+H Transit Inventory cost 12977.04 $ TI+K Total cost 13127.04 $ B2 B1-A Money lost 24.44 $

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