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Shop with Construction Elements are selling 12 000 pieces of fifty kilogram bags of cement. Nowadays strategy is to order twice per month 500 bags.

Shop with Construction Elements are selling 12 000 pieces of fifty kilogram bags of cement. Nowadays strategy is to order twice per month 500 bags. Price of one bag is 80 CZK. Consider situation where demand for those bags is constant over year and warehouse expenses are 20% of its price. Expenses to resupply warehouse are fixed and equal to 1000 CZK. 


Calculate expenses on current strategy . 


Set optimal strategy and compare with current one.

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