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PA 12-4 (Algo) Bruno Fruscalzo decided to start a small... 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 kg of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.04 per kg per month. He needs 9,000 kg of milk per month. a. Suppose Bruno orders 9750 kg each time. What is his average inventory (in kg)? (Round your answer to 1 decimal place.) b. Suppose Bruno orders 6250 kg each time. How many orders does he place with his supplier each year? C. How many kg should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs? d. If Bruno's storage vessel can hold only 3500 kg of milk, what would be Bruno's annual ordering and holding costs? kgs orders kgs

PA 12-4 (Algo) Bruno Fruscalzo decided to start a small... 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 kg of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.04 per kg per month. He needs 9,000 kg of milk per month. a. Suppose Bruno orders 9750 kg each time. What is his average inventory (in kg)? (Round your answer to 1 decimal place.) b. Suppose Bruno orders 6250 kg each time. How many orders does he place with his supplier each year? C. How many kg should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs? d. If Bruno's storage vessel can hold only 3500 kg of milk, what would be Bruno's annual ordering and holding costs? kgs orders kgs

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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PA 12-4 (Algo) Bruno Fruscalzo decided to start a small... 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 kg of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.04 per kg per month. He needs 9,000 kg of milk per month. a. Suppose Bruno orders 9750 kg each time. What is his average inventory (in kg)? (Round your answer to 1 decimal place.) b. Suppose Bruno orders 6250 kg each time. How many orders does he place with his supplier each year? How many kg should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs? d. If Bruno's storage vessel can hold only 3500 kg of milk, what would be Bruno's annual ordering and holding costs? kgs orders kgs
Transcribed Image Text:PA 12-4 (Algo) Bruno Fruscalzo decided to start a small... 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 kg of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.04 per kg per month. He needs 9,000 kg of milk per month. a. Suppose Bruno orders 9750 kg each time. What is his average inventory (in kg)? (Round your answer to 1 decimal place.) b. Suppose Bruno orders 6250 kg each time. How many orders does he place with his supplier each year? How many kg should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs? d. If Bruno's storage vessel can hold only 3500 kg of milk, what would be Bruno's annual ordering and holding costs? kgs orders kgs
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