Question: Inventory control subject t o known demand ( 1 ) A food store considers importing a special kind o f smoked sausages for sale. The

Inventory control subject to known demand (1)
A food store considers importing a special kind of smoked sausages for sale. The store estimates that the demand is stable at2100 per year. The cost of placing an order and getting it delivered is2000kr., and the cost of the sausages is18.50kr. each. The store uses an annual internal interest rate of22% for the cost of capital. In addition, they operate with a storage cost of3%of the value of the item, and a cost of2% for taxes and insurance.
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