Question
A local farmer has requested the business 351 class to help him determine the optimal level for the production of organic fertilizer for commercial farmers
A local farmer has requested the business 351 class to help him determine the optimal level for the production of organic fertilizer for commercial farmers which is created by a blend of pig, cow, and horse manure. The farm operates 210 days per year, but due to the natural process can only produce 300 pounds of finished fertilizer per day. The annual demand for fertilizer is 52,500 pounds. The farmer has determined that the cost of an order is $125.00 and the annual holding cost is four hundred dollars per 100 pounds. Determine the total cost associated with the optimal order quantity. Select one: a. $3995.00 b. $4950.00 c. $2989.00 d. $9544.00
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