The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 100 kilograms each day and that it costs $.08 per day to hold a kilogram of resin in inventory. She also knows that the order costs for resin are $200 per order, and that the lead time for delivery is four (7) days. If the order size was 2,000 kilograms of resin, what would be the total daily holding costs?

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Solution To calculate the total daily holding costs for the resin inventory we need to cons... View the full answer