A Shipment of Parts Valued at $75,000 Needs to Be

question 55

Essay

A shipment of parts valued at $75,000 needs to be shipped from Tampa,FL,to Chicago,IL.They could be shipped by rail,taking 15 days at a cost of $1,575,or by truck,taking 4 days at a cost of $2,640.The annual holding cost rate for this type of item has been estimated at 22%.What option is more economical?

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Definitions:

Hypothalamus

A region of the brain responsible for the regulation of various bodily functions, including temperature, hunger, and the release of certain hormones.

Paraventricular

Pertaining to a region around or near a ventricle in the brain, often referring to the paraventricular nucleus in the hypothalamus involved in regulating stress and appetite.

Leptin

A hormone produced by fat cells that helps to regulate energy balance by inhibiting hunger.

Fat Cells

Cells that store energy in the form of fat, also known as adipocytes.