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Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $ 3 0 per delivery ( no matter how much is delivered

Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $30 per delivery (no matter how much is
delivered) and $1.05 per gallon. Joe's annual holding cost per unit is 25 percent of the price per gallon. Joe uses 225 gallons of malt
per week.
a. Suppose Joe orders 750 gallons each time. What is his average inventory (in gallon)?
Average inventory
gallons
b. Suppose Joe orders 1,500 gallons each time. How many orders does he place with his supplier each year?
Note: Round your answer to 2 decimal places.
Number of orders
c. How many gallons should Joe order from his supplier with each order to minimize the sum of the ordering and holding costs?
Number of gallons
d. Suppose Joe orders 2,250 gallons each time he places an order with the supplier. What is the sum of the ordering and holding
costs per gallon?
Note: Round your answer to 3 decimal places.
Costs
per gallon
e. Suppose Joe orders the quantity from part (c) that minimizes the sum of the ordering and holding costs each time he places an
order with the supplier. What is the annual cost of the EOQ expressed as a percentage of the annual purchase cost?
Note: Round your answer to 2 decimal places.
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