Question
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 $21 delivery fee (the $21 fee is independent of the amount ordered). Brunos holding cost is $0.03 per kg per month. He needs 9000 kg of milk per month.
Round your answer to 3 digits after the decimal point.
Brunos supplier offers a 5% discount when a customer orders a full truck, which is 20000 kg. Assume Bruno can store that quantity and the product will not spoil. If Bruno orders a full truck, then the annual inventory holding cost will be $ (?) per kg, the annual purchasing cost will be $(?) , and the annual ordering and holding costs will be $(?) .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started