Question: PA 1 2 - 3 ( Static ) Joe Birra needs to purchase malt for his... Joe Birra needs to purchase malt for his microbrewery
PA Static Joe Birra needs to purchase malt for his...
Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $ per delivery no matter how much is delivered and $ per gallon. Joes annual holding cost per unit is percent of the price per gallon. Joe uses gallons of malt per week.
Suppose Joe orders gallons each time. What is his average inventory in gallon
Suppose Joe orders gallons each time. How many orders does he place with his supplier each year?
Note: Round your answer to decimal places.
How many gallons should Joe order from his supplier with each order to minimize the sum of the ordering and holding costs?
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