Question: Search out References Mailings Review View Help A v | A a v | A 8 : . Q * A ? . Heading 3
Search
out
References
Mailings
Review
View
Help
:
Heading
Normal
No Spacing
Heading
Paragraph
Styles
Se
Paragraph
Problem ptpt each
Sarah's Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs kilogram of palm oil per day, on average. The supplier charges a $ delivery fee per order which is independent of the order size and $ per kilogram. Sarah's annual holding cost is percent. Assume she operates and sells five days per week, weeks per year.
a If Sarah wants to minimize her annual ordering and inventory holding costs, how much palm oil should she purchase with each order in kilogram
b If Sarah orders kilogram with each order, what would be the annual sum of the ordering and holding costs? Note: Do not round intermediate calculations.
c If Sarah orders kilogram with each order, what would be the sum of the ordering and holding costs per kilogram sold? Note: Round your answer to decimal places.
d Sarah's supplier is willing to sell her palm oil at a percent discount if she purchases kilogram at a time. If she were to purchase kilogram per order, what would be her annual sum of the ordering and holding costs? Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
