Question: Problem 8 3 6 2 1 0 : The manager of a car wash received a revised price list from the vendor who supplies soap,

Problem 836210:
The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time for deliveries. Formerly the lead time was 2 days, but now the vendor promises a reduction of 25 percent in that time. Annual usage of soap is 6190 gallons. The car wash is open 360 days a year. Assume that daily usage is normal, and that it has a standard deviation of 4 gallons per day. The ordering cost is $45 and annual carrying cost is $3 a gallon. The revised price list (cost per gallon) is shown in the following table:

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