Sarah's Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 500 kg of palm oil per day on average. The supplier charges a $64 delivery fee per order (which is independent of the order size) and $5.50 per kg. Sarah's annual holding cost is 20 percent. Assume she operates and sells five days per week, 52 weeks per year. If Sarah wants to minimize her annual ordering and inventory holding costs, a. kgs how much palm oil should she purchase with each order (in kg)? (Do not round intermediate calculations.) If Sarah orders 3,500 kg with each order, what would be the annual sum of b. the ordering and holding costs? (Round your answer to 3 decimal places.) If Sarah orders 7,600 kg with each order, what would be the sum of the c. per kg ordering and holding costs per kg sold?
Sarah's Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 500 kg of palm oil per day on average. The supplier charges a $64 delivery fee per order (which is independent of the order size) and $5.50 per kg. Sarah's annual holding cost is 20 percent. Assume she operates and sells five days per week, 52 weeks per year. If Sarah wants to minimize her annual ordering and inventory holding costs, a. kgs how much palm oil should she purchase with each order (in kg)? (Do not round intermediate calculations.) If Sarah orders 3,500 kg with each order, what would be the annual sum of b. the ordering and holding costs? (Round your answer to 3 decimal places.) If Sarah orders 7,600 kg with each order, what would be the sum of the c. per kg ordering and holding costs per kg sold?
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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pls follow directions where it says do not round intermediate calculations
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