A container of ball-bearings valued at $25,000, currently located in Houston, TX, needs to be delivered to the Morton, IL, plant. The standard shipment method takes two days
However, for an additional charge of $500, the container can be sent overnight to arrive one day later. The annual holding cost rate for this type of item has been estimated at 28%. Which option is more economical?
Daily cost of holding the item is .28(25,000)/365 = $19.18. Since the extra shipping cost is $500, the $19.18 savings does not offset the extra shipping cost. Send the shipment using the standard method.
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In the main store control organization, _____
a. merchandise managers are placed in branch stores b. most authority remains with headquarters managers c. decentralization is practiced d. each branch has autonomy for merchandising and operations
The decision theory processes of maximizing expected monetary value (EMV) and minimizing expected opportunity loss (EOL) should lead us to choose the same alternatives
Indicate whether the statement is true or false