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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
Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $ per kilogram of milk plus a $ delivery fee the $ fee is independent of the amount ordered Bruno's holding cost is $ per kilogram per month. He needs kilograms of milk per month.
a Suppose Bruno orders kilograms each tirte. What is his average inventory in kilograms
tableAverage inventory,kilograms
b Suppose Bruno orders kilograms each time. How many orders does he place with his supplier each year? Note: Round your answer to decimal place.
Number of orders
c How many kilograms should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs?
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