A company normally ships a product by trail. Transportation cost is $200 and the transit time is 10 days. However the goods can be moved by air at a cost of $1,000 and will take only one day to delivery. The cost of inventory in transit for a shipment is $100 per day. What are the costs involved in their decision.

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The Answer of A company normally ships a product by trail. Transportation cost is $200 and the transit time is 10 days. However the goods can be moved by air at a cost of $1,000 and will take only one day to delivery. The cost of inventory in transit for a shipment is $100 per day. What are the costs involved in their decision.

A Company Normally Ships a Product by Trail