Question: Problem 668902: Do not include anything other than numbers in your responses. For example, do not include comma or dollar sign in your numbers. As
Problem 668902: Do not include anything other than numbers in your responses. For example, do not include comma or dollar sign in your numbers. As a rule of thumb, keep 2 decimal places for larger numbers and 3 decimal places for smaller numbers less than 1. A bakery buys sugar from a big distributor to use in baking cakes. Typically, they use 3673 bags of sugar in a year. The price of sugar is typically $11 per bag. The cost to the bakery for placing an order is $29, and the annual carrying cost is $18 per bag. The distributor has offered the bakery the following volume discount schedule:
| Order Size | Discount rate on the original price |
| 1--449 | 0 percent |
| 450--799 | 5 percent |
| more than 800 | 10 percent |
We are trying to find how many bags of sugar should the store order, whenever they place a new order of sugar.Assume 364 days a year and 52 weeks a year. IMPORTANT: Note, the discounts off of original price are reported. You need to calculate the actual prices. Keep two decimal places in your calculations.If we ignore the discounts, how many bags of sugar should we order? Fill in the blanks:
| Order Quantity | Unit Price to Pay | Total Annual Inventory Related Cost |
| Quantity from EOQ model | ||
| Enough to get 5 percent discount | ||
| Enough to get 10 percent discount |
Based on this quantity discount information, how may bags of sugar should the store order? How often (in "days") should the bakery order?
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