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Nestle Ltd. produces its premium plant food in 40 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 300 and the annual holding cost rate is OMR 0.550 per bag. What is the optimal total cost of setup and inventory holding? Round-up to the nearest integer a. 5859 O b. 6550 O c. 7564 d. 8022 e. None is correct

Nestle Ltd. produces its premium plant food in 40 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 300 and the annual holding cost rate is OMR 0.550 per bag. What is the optimal total cost of setup and inventory holding? Round-up to the nearest integer a. 5859 O b. 6550 O c. 7564 d. 8022 e. None is correct

Practical Management Science
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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Nestle Ltd. produces its premium plant food in 40 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 300 and the annual holding cost rate is OMR 0.550 per bag. What is the optimal total cost of setup and inventory holding? Round-up to the nearest integer a. 5859 O b. 6550 O c. 7564 d. 8022 e. None is correct
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