Janice runs a blogshop selling cold face mask cosmetics from Korea. For purchase of small quantity of orders (<=50 of each item) she can store it in her home fridge. For a larger quantity of orders (>50) she needs to additionally rent a freezer in a nearby warehouse and pay rental at a rate of $5/day. Also, for each order, she has to pay a shipping and administrative charge of $28. On average she sells about3 pieces of cold face mask per day.

Compute how many integer days she will need to rent the freezer every month given that she orders

only enough inventory to meet her average monthly demand as well as maximize profits.

NB: Assume 365 days in a year, ignore even and odd month discrepancies.

Q2:

Janice has a lead for an order of 180 face masks (not inclusive of her normal sales), however price is a concern. She wants to get the absolute best price from the supplier by combining both her orders of normal sales in Q1 and the lead of 180 face masks.. Calculate the best possible price she can negotiate using the existing discount structure as a baseline trend.

 

Assumptions:

 

2. a)Orders must be in integer numbers.
4. b)All calculations must be correct to two decimal places where necessary.