Assignment Content

A cafeteria is using milk for its daily operations. The cafeteria is open $350$ days a year and its daily demand is estimated at $10$

gallons. Carrying $($holding$)$ costs are $$5$ per gallon per year. Ordering costs are estimated at $$30$ per order. It takes $4$ days for each

order of flour to be filled.

What is the Economic Order Quantity?

Assume no safety stock is required, what is the bakery reorder point?

What is the Total Annual Holding Cost?

What is the number of optimal orders placed in a year?