You work at DeliWine, a US wine retailer. DeliWine sources one of their best selling wines, JeanRose, from a Norwegian wine distributor. The cost of placing an order is $ 513 and the annual holding cost rate of DeliWine is 14 %. The lead time is 2 weeks and DeliWine only takes ownership of the goods when the shipment arrives at their distribution center in Hawaii.

Assume that there are 48 weeks in a year.

The annual demand for JeanRose is very stable at 34954 bottles. The costs of JeanRose is $ 78 per bottle.

After finding the widest possible penalty-cost ratio you realize that this will probably never happen since it assumes you select the biggest Q and the conditions yielding the smallest Q are the true values. You decide to estimate EOQ using the average, not the extreme, values of the inputs. Let's call this .

What is the maximum management-cost penalty if you order ? Enter your answer in decimal form using two decimal places. For example, if your answer is 23.24%, you should enter .23 in the box below.