C&A Cruise owns 10 ships and wants to serve 2000 passengers each week. Each cruise ship can carry 500 passengers on each voyage. Assume ships always travel fully loaded.

What is the longest average travel time on a voyage that allows C&A Cruise to meet its goal of serving 2000 passengers per week?

a) 4 weeks

b) 2.5 weeks

c) 1 week

d) Different # of weeks

e) Cannot be determined

b. 2.5 weeks

Explanation:

Data provided

Own ships = 10

Serve = 2,000 passengers each week

Each cruise Ship carry = 500 passengers

So, here Inventory is passengers

Inventory on voyage = Own ships * Number of passenger per cruise ship

10 * 500

= 5,000 passenger

Passenger serving rate = 2000 passenger per week

Flow time = Inventory on voyage : passengers serving rate

= $5,000 : $2000

= 2.5 weeks