#9

PA 12-3 (Static) Joe Birra needs to purchase malt for his... Joe Birra needs to purchase malt for his microbrewery production. His suppller charges $35 per delivery (no matter how much is delivered) and $1.20 per gallon. Joe's annual holding cost per unit is 35 percent of the price per gallon. Joe uses 250 gallons of malt per week. Suppose Joe orders 1,000 gallons each time. What is his average inventory (in gallons gal)? (Round your answer to 2 decimal places.) b. Suppose Joe orders 1,500 gallons each time. How many orders does he place orders with his supplier each year? How many gallons should Joe order from his supplier with each order to minimize c. the sum of the ordering and holding costs? gallons (Round your answer to 3 decimal places.) d. Suppose Joe orders 2,500 gallons each time he places an order with the supplier. per gallon (Round your answer to 2 decimal places.) Suppose Joe orders the quantity from part (c) that minimizes the sum of the ordering and holding costs each time he places an order with the supplier. What is the annual cost of the EOQ expressed as a percentage of the annual purchase cost? f. If Joe's supplier only accepts orders that are an integer multiple of 1,000 gallons. gallons Joe's supplier offers a 3 percent discount if Joe is willing to purchase 8,000 g. gallons or more. What would Joe's total annual cost (purchasing, ordering, and holding) be if he were to take advantage of the discount