Question: Joe needs to purchase malt for his micro - brew production. His supplier charges $ 3 5 per delivery ( no matter how much is
Joe needs to purchase malt for his microbrew production. His supplier charges $ per delivery no matter how much is delivered and $ per gallon. Joe's annual holding cost per unit is of the dollar value of the unit. Joe uses gallons of malt per week.
How many gallons should Joe order from his supplier with each order?
Answer:
Suppose Joe were to order gallons each time he orders. How many orders per year would he place on average?
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