Supply Chain Management Al Baik must ship replacement

Date Published: 04 October, 2017

CT11 for MGT530

 

Supply Chain Management (100 points)

Al Baik must ship replacement parts for their ovens, and the supply chain manager must choose between two shipping alternatives: two-day freight, and five-day freight. Using five-day freight saves 750 Riyal (SAR), but the primary consideration is holding cost, which is 38 Riyal per unit per year. Al Baik must ship 2000 units. In a 3-4-page paper, which alternative would you recommend to the supply chain manager and why?

Be sure to use at least two current, scholarly references beyond any required course readings. Current sources are those published within the most recent five-year period, and scholarly sources are those from peer-reviewed journals.

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