Question: Hull Baking Company uses 2 5 0 , 0 0 0 lb of sugar annually in its cakes and pastries. The company can order the
Hull Baking Company uses lb of sugar annually in its cakes and pastries. The company can order the sugar in lb bags, at the cost of $ per bag, delivered. The cost of preparing and sending an order is $ The storage and handling costs amount to $ per bag per year, based on average inventory. The cost of capital for Hull is Calculate the optimal size of an order.
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