Question: A manager must periodically place orders for nuts. Suppose the manufacturing uses nuts at a rate of 50 kilograms per day, and that it costs

A manager must periodically place orders for nuts. Suppose the manufacturing uses nuts at a rate of 50 kilograms per day, and that it costs $.04 per day to carry a kilogram of nuts in inventory. The manager knows that the order costs for nuts are $100 per order, and that the lead time for delivery is four days. If the order size was 1,000 kilograms of nuts, what would be the average daily total inventory costs, EXCLUDING the cost of the nuts? A $20 3. $40 C. $10 0.35 @E. 525

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