Question: Danni s Best Scoop ( DBS ) , a small local ice cream stand at the City A , is very popular and selling a

Dannis Best Scoop (DBS), a small local ice cream stand at the City A, is very popular and selling a steady amount of 50 litres of ice cream every day, 360 days a year. It orders the specialty ice cream directly from Italy. For every order, there is a fixed delivery charge of 30. The inventory carrying cost for one litre of ice cream is 2 per year.
a) Now consider the fact that the available storage space of WBS is only 500 litres. However, it could rent nearby space for another 500 litres at a cost of 20/month. Should it rent the additional space? Explain your reasoning.

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