Question: Suppose that a ship operator is considering to slowdown its ship from its current speed of 15knots on a particular voyage. This would cut the
Suppose that a ship operator is considering to slowdown its ship from its current speed of 15knots on a particular voyage. This would cut the bunker consumption per day from 35 tons to 20 tons. The bunker cost $150 per ton. Each roundtrip is 5000 nautical miles long. The ship carriers 10, 000 ton of cargo on each roundtrip, at a rate of $10/ton. The ship operates 360days a year.
A. How many less voyages can the ship complete in a given year?
B. How much revenue would the ship owner miss per day by slowing down?
C. If the goal is to maximize net profit, should the ship slow down?
please explain the answer.
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