ABF needs to deliver an important LTL shipment in 6 days. If the delivery is 2 days late then ABF is charged a penalty of $500. The cost of the shipment is $3,200 and costs decrease at a rate of $100 for every day deviation from the target delivery time. 1) What delivery time minimizes ABF's costs? a. 6.4 days b. 6.7 days c. 7.3 days d. 6 days e. 7 days f. 7.5 days 2) What is the Taguchi Loss cost if ABF delivers at the target delivery time? a. $2,600 b. $3,200 c. $500 d. $0 e. $3,700 f. $3,100 g. $100

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