Question: A restaurant in Memphis has relatively stable demand for its soups throughout the year, with an annual total of 1 0 , 0 0 0

A restaurant in Memphis has relatively stable demand for its soups throughout the year, with an
annual total of 10,000 gallons. The cost of placing an order is estimated at $25 and the annual
cost of holding inventory is estimated at 42% of any products value. The company purchases the
soup for $1.50 per gallon.
How many gallons should the company order at a time?
What is the total cost of this plan?
How often should the books be delivered?

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