Question: Cornucopia is a small chain ( 1 5 stores ) that specializes in locally grown and organic food. They sell granola in large bins so

Cornucopia is a small chain (15 stores) that specializes in locally grown and organic food. They sell granola in large bins so that customer can purchase the quantity they wish and bring the granola home in their own containers. Granola is sold for $7 per lbs and weekly demand is 900 lbs. Their supplier charges $40 per delivery and $5 per lbs. They will deliver in any quantity ordered. Cornucopias annual holding cost is 20% of the value of the inventory. (Recall, this means that holding $10 in inventory for one year would cost 0.2 x $10= $2.) Say Cornucopia orders 5,000 lbs with each order. What is the total inventory holding and ordering costs (in $s) incurred per lb? Assume 52 weeks per year.

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