Question: You run a small store that has a loyal customer base. Your customers are particularly fond of the homemade cookies you carry; in fact, on
You run a small store that has a loyal customer base. Your customers are particularly fond of the homemade cookies you carry; in fact, on average, you sell 100 bags of cookies per day, 7 days a week, 52 weeks a year. You buy the cookies for $2.60 per bag. You estimate that it costs you $7/order to place an order (regardless of order size), and that your annual inventory carrying cost is about 40% of the cost of the cookies. Order 700 bags. How many orders will you place in a year?
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