Your options for shipping $102,570 of machine parts from Hamilton to Kuala Lumpur, Malaysia,

Question: Your options for shipping $102,570 of machine parts from Hamilton to Kuala Lumpur, Malaysia, are (1) use a ship that will take 30 days at a cost of $3,510, or (2) truck the parts to Vancouver and then ship at a total cost of $4,890. The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is
Show transcribed image textAlernative 1 is more economical with daily holding cost of $84.30 b. For each additional day it takes to deliver…View the full answerTranscribed image text: Your options for shipping $102,570 of machine parts from Hamilton to Kuala Lumpur, Malaysia, are (1) use a ship that will take 30 days at a cost of $3,510, or (2) truck the parts to Vancouver and then ship at a total cost of $4,890. The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year. a) is more economical, with a daily holding cost of $ (Enter your response rounded to two decimal places.) b) What issues are not included in the data presented? A. For each additional day it takes to deliver the parts, total fuel costs for shipping increase. B. For each additional day it takes to deliver the parts, customer satisfaction is likely to decrease. C. For each additional day it takes to deliver the parts, you forgo the interest you could have earned on the payment.