13.2 A company manufactures component parts for machine tools in North America and ships then to Southeast Asia for assembly and sale in the local market. The components are shipped by sea, tran: time averages 6 weeks, and the shipping costs $2700 per shipment. The company is considering movi the parts by air at an estimated cost of $7500; the shipment taking 2 days to get there. If inventory in transit for the shipment costs $125 per day should they shin by air?

13.2 A company manufactures component parts for machine tools in North America and ships then to Southeast Asia for assembly and sale in the local market. The components are shipped by sea, tran: time averages 6 weeks, and the shipping costs $2700 per shipment. The company is considering movi the parts by air at an estimated cost of $7500; the shipment taking 2 days to get there. If inventory in transit for the shipment costs $125 per day should they shin by air?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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