Question: A food processor purchases corn for use in its products. The firm uses 7 0 0 pounds of corn per week and purchases corn for

A food processor purchases corn for use in its products. The firm uses 700 pounds of corn per week and purchases corn for $0.45 per pound from a supplier. The cost to hold one pound of corn in inventory for one year is $0.09. Each time the firm orders corn from the supplier, the firm must pay a $48 order processing charge.
Assume there are 52 weeks in a year and round your answer to the nearest integer value.
What is the optimal order quantity (in pounds)?
pounds
 A food processor purchases corn for use in its products. The

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!