Question
Cookie Crumbles is a bakery that purchases bags of flour to make their cookies. Demand is 42 bags of flour per week. The cost
Cookie Crumbles is a bakery that purchases bags of flour to make their cookies. Demand is 42 bags of flour per week. The cost to hold a bag is $4 per year. The ordering cost is $30 per order. The flour supplier offers Cookie Crumbles tiered pricing options depending on the quantity ordered each time. The table below lists the prices for each bag and the quantity range. Range 1 - 99 100 - 199 200 - 299 300 or more Price $4.00 $3.80 $3.40 $3.00 a. What is the minimum common point for the ranges above? b. How many bags should Cookie Crumbles order when they need to resupply?
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