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Binifont is a retail chain that sells PuraHoney, a popular brand of honey manufactured by PHFoods. The annual demand for PuraHoney experienced by Binifont in
Binifont is a retail chain that sells PuraHoney, a popular brand of honey manufactured by PHFoods. The annual demand for PuraHoney experienced by Binifont in the local market is1200 jars. PH Foods charges $5 per jar, and Binifont uses an inventory holding rate of 25%per annum. PH Foods has just announced a one-time promotional discount of $1 on all jars ofhoney procured by retailers over the next 15 days. Compute the optimal order quantity thatBinifont needs to procure during the promotional period if they incur an ordering cost of $30per ord
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