e - g

Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.50 per kg of milk plus a $20 delivery fee (the $20 fee is independent of the amount ordered). Bruno's holding cost is $0.02 per kg per month. He needs 8,000 kg of milk per month Suppose Bruno orders 10000 kg each time. What is his average inventory in kg)? a. kgs (Round your answer to 1 decimal place.) Suppose Bruno orders 7500 kg each time. How many orders does he place with his supplier each year? b. orders C. kgs d. How many kg should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs? If Bruno's storage vessel can hold only 4000 kg of milk, what would be Bruno's annual ordering and holding costs? if Bruno's storage vessel can hold only 5000 kg of milk, what would be Bruno's annual ordering and holding costs ? Bruno's supplier's truck can carry 20,000 kg of milk. The supplier does not want to deliver to more than three customers with each truck. Thus, the supplier f. requires a minimum order quantity of 6500 kg. If Bruno orders the minimum