HW1 - 1 IfiwereSkipGrenoble, . customer

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1. If i were Skip Grenoble, I would advise Jim Beierlein to use air transportation because this  would give Senco greater flexibility in reacting to fluctuations in demand in a high tech indus- try that is characterized by short product life cycle. Air transportation will also provide higher  customer service levels since its provides faster transit times. Example, if Senco can reliably provide customers with their products in a relatively short period of time, customers can min- imize inventory cost also. And faster transit times also mean shorter and more reliable fore- casting as Senco would be able to rely on smaller and more frequent shipment of goods to  their warehouse. Also if we were to look at present cost of the transportation via air  ($290,000) is more than transportation via ocean ($150,000). But if we look at the overall to-
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