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 :
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 days, but now the vendor promises a reduction of percent in that time. Annual usage of soap is gallons. The car wash is open days a year. Assume that daily usage is normal, and that it has a standard deviation of gallons per day. The ordering cost is $ and annual carrying cost is $ a gallon. The revised price list cost per gallon is shown in the following table:
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