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4. (8 points) A large producer of household products purchases a glyceride used in one of its deodorant soaps from outside of the company at
4. (8 points) A large producer of household products purchases a glyceride used in one of its deodorant soaps from outside of the company at a cost of $1.5 per pound. It uses the glyceride at a fairly steady rate of 40 pounds per month, and the company uses a 23 percent annual interest rate to compute holding costs. The chemical can be purchased from a supplier who charges a delivery fee that varies on the ordering quantity as follows: Order Size OsQ5700 7015951,500 1,50159 Delivery Fee $15 $25 $30 Assume that the cost of order processing is $150. What is the optimal order quantity and the corresponding annual total cost
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