Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.5 per kg of milk plus a $25 delivery fee (that is independent of the amount ordered). Brunos holding cost is $0.02 per kg per month. He needs 10000 kgs of milk per month.
a.	Suppose Bruno orders 9250 kgs each time. What is his average inventory (kgs)?		4,625selected answer correct	kgs
	(Round your answer to 1 decimal place.)
b.	Suppose Bruno orders 8000 kgs each time. How many orders does he place with his supplier each year?		15.0selected answer correct	orders
c.	How many kgs should Bruno order from his supplier with each order to minimize the sum of ordering and holding costs?		8,165selected answer incorrect	kgs
	(Do not round intermediate calculations. Round your answer to 2 decimal places.)
d.	If Brunos storage vessel can hold only 3250 kgs of milk, what would be Brunos annual ordering and holding costs?		$2,766.00selected answer incorrect
	(Do not round intermediate calculations. Round your answer to 2 decimal places.)
e.	If Brunos storage vessel can hold only 6000 kgs of milk, what would be Brunos annual ordering and holding costs?		$366.00selected answer incorrect
	(Do not round intermediate calculations. Round your answer to 2 decimal places.)
f.	Brunos suppliers truck can carry 20,000 kgs of milk. The supplier does not want to deliver to more than 3 customers with each truck. Thus, the supplier requires a minimum order quantity of 6,500 kgs. If Bruno orders the minimum amount, what would be the sum of his annual ordering and holding costs? Assume he has a storage vessel large enough to hold 6,500 kgs.		not attempted
	(Round your answer to 3 decimal places.)
g.	Brunos supplier offers a 2% discount when a customer orders a full truck, which is 20,000 kgs. Assume Bruno can store that quantity and the product will not spoil. If Bruno orders a full truck, what would be the inventory holding and ordering cost incurred per kg of milk? Assume the discount also applies to the holding cost.