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I just need 9 and ten Sarah's Organic Soap (Q8 - Q10) Sarah's Organic Soap Company needs to purchase organic Palm oil to make her
I just need 9 and ten
Sarah's Organic Soap (Q8 - Q10) Sarah's Organic Soap Company needs to purchase organic Palm oil to make her soaps. She needs 1,000 kgs of Palm oil per day on average. The supplier charges a $60 delivery fee per order (which is independent of the order size) and $4.75 per kg. Sarah's annual holding cost is 25%. Assume 52 weeks per year and 5 days per week. Q8. If Sarah wants to minimize inventory holding and ordering costs, how much Palm oil should she purchase with each order (in kg )? Q9. Sarah's supplier is willing to sell her Palm oil at a 5% discount if she purchases 10,000kgs at a time. If she were to purchase 10000kgs per order what would be her average inventory holding and delivery fees per day (in $s )? Q10. If she were to purchase 10000kgs per order, what would be her total cost per day. (purchasing, holding costs and delivery costs)Step by Step Solution
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