Question: please answer letter E Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk

please answer letter E
please answer letter E Bruno Fruscalzo decided to
Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.5 per kg of milk plus a $15 delivery fee (that is independent of the amount ordered). Bruno's holding cost is $0.03 per kg per month. He needs 8750 kgs of milk per month. a. Suppose Bruno orders 9250 kgs each time. What is his average inventory (kgs)? 4,625 kgs (Round your answer to 1 decimal place.) b. Suppose Bruno orders 6000 kgs each time. How many orders does he place with his supplier each year? 17.5 orders C. How many kgs should Bruno order from his supplier with each order to minimize the sum of ordering and holding costs? 2,958 kgs (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. If Bruno's storage vessel can hold only 2000 kgs of milk, what would be Bruno's annual ordering and holding costs? (Do not round intermediate calculations. Round your answer to 2 decimal places.) If Bruno's storage vessel can hold only 7000 kgs of milk, what would be Bruno's annual ordering and holding costs? 1,147.50 1,485.00

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!