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 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 $ per lbs and weekly demand is lbs Their supplier charges $ per delivery and $ per lbs They will deliver in any quantity ordered. Cornucopias annual holding cost is of the value of the inventory. Recall this means that holding $ in inventory for one year would cost x $ $ Say Cornucopia orders lbs with each order. What is the total inventory holding and ordering costs in $s incurred per lb Assume weeks per year.
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