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Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.50 per
Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.50 per kg of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.01 per kg per month. He needs 8,000kg of milk per month. b. Suppose Bruno orders 8000kg each time. How many orders does he place with his supplier each year? c. How many kg should Bruno order from his supplier with each order to c. minimize the sum of the ordering and holding costs? d. If Bruno's storage vessel can hold only 3250kg of milk, what would be Bruno's annual ordering and holding costs? e. If Bruno's storage vessel can hold only 6750kg of milk, what would be e. Bruno's annual ordering and holding costs? Bruno's supplier's truck can carry 20,000kg of milk. The supplier does not want to deliver to more than three customers with each truck. Thus, the f. supplier requires a minimum order quantity of 6500kg. If Bruno orders the minimum amount, what would be the sum of his annual ordering and holding costs? Assume he has a storage vessel large enough to hold 6500kg
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