McBurger orders ground meat at the start of each week to cover the weeks demand of 300

Question:

McBurger orders ground meat at the start of each week to cover the weeks demand of 300 lb. The fixed cost per order is $20. It costs about $.03 per lb per day to refrigerate and store the meat.

(a) Determine the inventory cost per week of the present ordering policy.

(b) Determine the optimal inventory policy that McBurger should use, assuming zero lead time between the placement and receipt of an order.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: