What is the optimal quantity of containers to order


Problem: The case mentioned a single container could hold components for 800 bicycles. In addition to the information in the case, suppose that in a given year, BB expects a stable monthly demand of 20,000 BB incurs shipping costs of USD 7,000 per container. Moreover, BB incurs an annual unit holding cost of USD 8 per bicycle (in CDK form) per year held in inventory. What is the optimal quantity of containers to order (round up to the nearest integer) and the optimal frequency of orders?

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Supply Chain Management: What is the optimal quantity of containers to order
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