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
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.
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