Question: Inventory control 3. A building material supplier obtains its bagged cement from a manufacturer. Demand is constant throughout the year and last year the company

Inventory control

3. A building material supplier obtains its bagged cement from a manufacturer. Demand is constant throughout the year and last year the company sold 2000 tons of cement. It estimates the costs of placing an order around 25 OMR each time an order is placed. The annual cost of holding inventory is 60 OMR per ton. (a) How much should the company order at a time? (b) If the manager places an order for 100 tons at a time, what will be the additional cost

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