If Sarah wants to minimize her annual ordering and inventory holding costs, how much palm oil should she purchase with each order (in kilogram)?
If Sarah orders 3,750 kilogram with each order, what would be the annual sum of the ordering and holding costs? Note: Do not round intermediate calculations.
If Sarah orders 8,400 kilogram with each order, what would be the sum of the ordering and holding costs per kilogram sold? Note: Round your answer to 3 decimal places.
Sarah’s supplier is willing to sell her palm oil at a 5 percent discount if she purchases 15,000 kilogram at a time. If she were to purchase 15,000 kilogram per order, what would be her annual sum of the ordering and holding costs? Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.
PLEASE HIGHLIGHT ONE ANSWER. I WILL UPVOTE!!
Daily demand = 900 Kgs Number of weeks in a year = 52 weeks Number of working days in a week = 5 days Annual demand (D) = 900×52×5 = 234,000 Kgs Ordering cost per order (S) = $ 54 Cost per Kg (C) = $ 6 Holding cost percent (h) = 15% (A). Let economic…View the full answer