Carrie needs to purchase Olive oil to make homemade salad dressings. She needs 1,300 kgs of Olive
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Question:
Carrie needs to purchase Olive oil to make homemade salad dressings.
She needs 1,300 kgs of Olive oil per day on average.
The supplier charges a $80 delivery fee per order (which is independent of the order size) and $4.25 per kg.
Carrie’s annual holding cost is 21%.
Assume 52 weeks per year and 7 days per week.
If Carrie wants to minimize inventory holding and ordering costs, how much Olive oil should she purchase with each order (in kgs)? Provide your answer to the nearest integer value.
Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
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