Question: Operational Research The demand for spring water at Checkers Hyper 600 litres per week. The setup cost for placing an order to replenish inventory is

Operational Research The demand for spring water

Operational Research

The demand for spring water at Checkers Hyper 600 litres per week. The setup cost for placing an order to replenish inventory is R25. The order is delivered by the supplier which charges Checkers R0.10/liter for the cost of transportation. This transportation cost increases the cost of water to R1.25 /liter. The water loses its freshness while stored at Checkers. To account for this, Checkers charges an annual holding cost of R2.6/liter. A. Determine how often Checkers should order for water and what size each order should be

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