What is the optimal order quantity

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Reference no: EM132070951

The daily demand for containers at a shipyard in the port of Guayaquil (Ecuador) is 15 in average. Containers are produced by a Peruvian manufacturer at $1,000 each. The cost of placing an order of containers is $10,000 and the lead time is 1 month. Each empty containers is stored at an adjacent lot at $20 per week. The shipyard closes 5 days during the year. What is the optimal order quantity? What would be the minimum inventory cost? ) A lot of 1,000 containers at $800 each is offered to the shipyard. Should the shipyard buy the lot? Explain.

Reference no: EM132070951

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