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If Bruno's storage vessel can hold only 7,000 kilograms of milk, what would be Bruno's annual ordering and holding costs if he orders this amount?
If Bruno's storage vessel can hold only 7,000 kilograms of milk, what would be Bruno's annual ordering and holding costs if he orders this amount? Answer is complete but not entirely correct. Bruno's supplier's truck can carry 20,000 kilograms of milk. The supplier does not want to deliver to more than three customers with each truck. Thus, the supplier requires a minimum order quantity of 6,500 kilograms. 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 6,500 kilograms. Answer is complete and correct. . Bruno's supplier offers a 3 percent discount when a customer orders a full truck, which is 20,000 kilograms. Assume Bruno can store that quantity and the product will not spoil. If Bruno orders a full truck, what would be the annual inventory holding and ordering cost incurred per kilogram of milk? Note: Round your answer to 3 decimal places. 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 kilogram of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.03 per kilogram per month. He needs 8,750 kilograms of milk per month. a. Suppose Bruno orders 9,250 kilograms each time. What is his average inventory (in kilograms)? Answer is complete and correct. b. Suppose Bruno orders 6,000 kilograms each time. How many orders does he place with his supplier each year? Note: Round your answer to 1 decimal place. Answer is complete and correct. c. How many kilograms should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs? Answer is complete and correct. d. If Bruno's storage vessel can hold only 2,000 kilograms of milk, what would be Bruno's annual ordering and holding costs if he orders this amount
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