Question

Italian car manufacturer Avanti will soon start exporting its luxury cars to the U.S. It expects to sell there 48,000 models annually. Cars will be brought to the U.S. by ship, with a cost of $ 12,000 per trip. Once in the U.S., cars will be stored, which charge $1,000 per month for each car stored there. How many ship trips should the company use per year? (Hint: First calculate the number of cars to be sold per month and then proceed in a manner similar to the EOQ Practice Problem) Round off your answer to the nearest whole number. For example, if your answer is 132.37, you should answer 132.

Answer 1

4 EOQ SQRT 2* Annual demand * ordering cost )/carrying cost ] Annual demand odering cost Carrying cost per month Monthly demand 1000 10 EOQ EOQ 309.8387 310 12 13 Trip per month rip per annum 13 15 156

4 EOQ SQRT2 Annual demand *ordering co Annual demand odering cost Carrying cost per month Monthly demand 1000 D6/12 10 EOO EOO -SORT(2* D9 *D7/D8) -ROUND(D11,0.5) 12 13 -ROUNDUP(D9/D12,0.5) Trip per month rip per annum -D14 12 16