Question: Question 4-Grocery Store ( 25 Marks) Food Basics is a grocery banner in over 142 stores across Ontario. Since 1995 , Food Basics has continued
Question 4-Grocery Store ( 25 Marks) Food Basics is a grocery banner in over 142 stores across Ontario. Since 1995 , Food Basics has continued to save our customers money on all of their grocery needs to give them "Always More for Less". Assume the stores are open 350 days a year and use 200 large gallons of hand sanitizer daily. The cost of placing an order $40, and the annual inventory holding cost is 20% of the unit price. The service manager just received the unit prices for different order quantity levels. a) Compute the optimal order quantity. b) At the optimum order quantity, compute the total inventory cost, including the cos of buying the material, ordering cost, and holding cost
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