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9 (6.25 points) Pepperidge Farm company in Illinois purchases sugar in barrels. The plant uses 5000 barrels of sugar each year. Setup/Ordering costs are $5
9 (6.25 points) Pepperidge Farm company in Illinois purchases sugar in barrels. The plant uses 5000 barrels of sugar each year. Setup/Ordering costs are $5 and carrying/holding costs are $20 per barrel per year. Suppose that the plant is open 250 days a year and its daily demand is estimated at 20 barrels. It takes 5 days for each order of barrel to be filled. What is the total cost of ordering and holding sugar? $25 $1000 $50 $500 $100
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