Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.50 per kilogram of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.03 per kilogram per month. He needs 8, 250 kilograms of milk per month. Suppose Bruno orders 10,000 kilograms each time. What is his average inventory (in kilograms)? Suppose Bruno orders 6,250 kilograms each time. How many orders does he place with his supplier each year? Note: Round your answer to 1 decimal place. How many kilograms should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs? If Bruno's storage vessel can hold only 2, 000 kilograms of milk, what would be Bruno's annual ordering and holding costs if he orders this amount? If Bruno's storage vessel can hold only 7,000 kilograms of milk, what would be Bruno's annual ordering and holding costs if he orders this amount? Bruno's supplier's truck can carry 20, 000 kilograms of milk. The supplier does not want to deliver to more than three customers with each truck. Thus, the supplier requires a minimum order quantity of 6,500 kilograms. If Bruno orders the minimum amount, what would be the sum of his annual ordering and holding costs? Assume he has a storage vessel large enough to hold 6,500 kilograms. Bruno's supplier offers a 2 percent discount when a customer orders a full truck, which is 20,000 kilograms. Assume Bruno can store that quantity and the product will not spoil. If Bruno orders a full truck, what would be the annual inventory holding and ordering cost incurred per kilogram of milk? Note: Round your answer to 3 decimal places.
Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.50 per kilogram of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.03 per kilogram per month. He needs 8, 250 kilograms of milk per month. Suppose Bruno orders 10,000 kilograms each time. What is his average inventory (in kilograms)? Suppose Bruno orders 6,250 kilograms each time. How many orders does he place with his supplier each year? Note: Round your answer to 1 decimal place. How many kilograms should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs? If Bruno's storage vessel can hold only 2, 000 kilograms of milk, what would be Bruno's annual ordering and holding costs if he orders this amount? If Bruno's storage vessel can hold only 7,000 kilograms of milk, what would be Bruno's annual ordering and holding costs if he orders this amount? Bruno's supplier's truck can carry 20, 000 kilograms of milk. The supplier does not want to deliver to more than three customers with each truck. Thus, the supplier requires a minimum order quantity of 6,500 kilograms. If Bruno orders the minimum amount, what would be the sum of his annual ordering and holding costs? Assume he has a storage vessel large enough to hold 6,500 kilograms. Bruno's supplier offers a 2 percent discount when a customer orders a full truck, which is 20,000 kilograms. Assume Bruno can store that quantity and the product will not spoil. If Bruno orders a full truck, what would be the annual inventory holding and ordering cost incurred per kilogram of milk? Note: Round your answer to 3 decimal places.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:Bruno Fruscalzo decided to start a small production
facility in Sydney to sell gelato to the local restaurants.
His local milk supplier charges $0.50 per kilogram of
milk plus a $15 delivery fee (the $15 fee is independent
of the amount ordered). Bruno's holding cost is $0.03
per kilogram per month. He needs 8,250 kilograms of
milk per month. Suppose Bruno orders 10,000
kilograms each time. What is his average inventory (in
kilograms)? Suppose Bruno orders 6,250 kilograms
each time. How many orders does he place with his
supplier each year? Note: Round your answer to 1
decimal place. How many kilograms should Bruno order
from his supplier with each order to minimize the sum
of the ordering and holding costs? If Bruno's storage
vessel can hold only 2,000 kilograms of milk, what
would be Bruno's annual ordering and holding costs if
he orders this amount? If Bruno's storage vessel can
hold only 7, 000 kilograms of milk, what would be
Bruno's annual ordering and holding costs if he orders
this amount? Bruno's supplier's truck can carry 20, 000
kilograms of milk. The supplier does not want to deliver
to more than three customers with each truck. Thus, the
supplier requires a minimum order quantity of 6, 500
kilograms. If Bruno orders the minimum amount, what
would be the sum of his annual ordering and holding
costs? Assume he has a storage vessel large enough to
hold 6,500 kilograms. Bruno's supplier offers a 2
percent discount when a customer orders a full truck,
which is 20,000 kilograms. Assume Bruno can store that
quantity and the product will not spoil. If Bruno orders a
full truck, what would be the annual inventory holding
and ordering cost incurred per kilogram of milk? Note:
Round your answer to 3 decimal places.
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