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10 Monczka-Trent Shipping is the logistics vendor for HandfieldManufacturing Co. in Ohio.
11.10Monczka-Trent Shippingis thelogistics vendorforHandfieldManufacturing Co. in Ohio.Handfieldhas daily ship-mentsof apower-steering pumpfromitsOhioplantto anautoassembly line in Alabama. The value of the standard shipment is$250,000.Monczka-Trenthas twooptions:(1) itsstandard 2-dayshipment or (2) a subcontractor who will team drive overnight withan effective delivery of 1 day. The extra driver costs $175.Handfield's holding cost is 35% annually for this kind of inventory.a)Which optionismore economical?b)What production issues are not included in the data presented?
