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A big retailer needs 80 tons of macaroni each year. Buying price of macaroni is 10 TL per kg. Holding cost of keeping macaroni at
A big retailer needs 80 tons of macaroni each year. Buying price of macaroni is 10 TL per kg. Holding cost of keeping macaroni at inventory is 10% of buying price. The acquisition cost per one order is 20 TL. Given this
a) what is the optimal order?
b) How many orders must be given by the retailer during a year and at what intervals?
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