Question: Inventory Management Problems Set 2. Cat food Inc. (CLI) is the distributor of a very popular blend of cat good that sells for $2.25 per

Inventory Management Problems Set 2. Cat food

Inventory Management Problems Set 2. Cat food Inc. (CLI) is the distributor of a very popular blend of cat good that sells for $2.25 per can. CLI experiences demand of 1000 cans per week on average. They order the cans of cat food from the Nutritious & Delicious Co (N&D). N&D sells cans to CLI at $1.00 per can and charges a flat fee of $7 per order for shipping and handling. Assume that the annual holding cost per unit is 15% of the cost of the can. Also, assume that there are 50 weeks in a year. It takes 2 days for CLI to receive the order. a. How many cans of cat food should CLI order each time? b. What is CLI's average total ordering cost for one year

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