QUESTION: 173

A company normally ships to a customer by rail at a cost of $500 per load. The transit time is fourteen days. The goods can be shipped by truck for $700 per load and transit time of four day. If transit inventory cost is $35 per day, what does it cost to ship each way?

Rail: $990 and Truck: $ 840
Rail: $900 and Truck: $ 890
Rail: $970 and Truck: $ 870
Rail: $980 and Truck: $ 880

Answer(s): A

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QUESTION: 174

A company ships a particular product to a market located 1000 miles from the plant at a cost of $4 per mile. Normally it ships 500 units at a time. If the company can ship the units unassembled, it can ship 800 units in a truck. What is the line-haul cost per unit now?

$4
$5
$8
$10

Answer(s): B

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QUESTION: 175

The planning horizon is usually longer for several reasons e.g.:

The longer the horizon, the greater the "visibility"
The longer the horizon, the better management's ability to avoid future problems
The longer the horizon, the better the management's ability to take advantage of special circumstances.
All of these

Answer(s): D

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