Answer question 8

Penni's ice cream company needs to produce 850 gourmet ice cream sandwiches per day. Therefore, there is the need for 1700 cookies per day. You know that in order to make one batch of cookies ( 50 cookies) you need to follow the recipe to the right. Assume you run 5 days per week, 50 weeks per year. Hence, for the production of 1700 cookies, you need 68 eggs per day. Since you want to have a safety stock (in case some of them break), you want to have 74 eggs per day. If there is a delivery fee of $28 and a labor cost of $12 for the clerk making the order, that adds up to a total of $40 for the cost to order. There is also a monthly carrying cost (for refrigerating the eggs, etc.) of $0.75 per dozen of eggs. Determine the optimal order size for the eggs (in dozens). What is the total cost for product and inventory handling? (\$)