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please answers all the questions Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $25 per delivery (no matter how much
please answers all the questions
Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $25 per delivery (no matter how much is delivered) and $1.25 per gallon. Joe's annual holding cost per unit is 25 percent of the price per gallon. Joe uses 200 gallons of malt per week. a. Suppose Joe ordors 750 gallons each time. What is his average inventory (in gal)? gallons (Round your answer to 2 decimal places.) b. Suppose Joe orders 1250 gallons each time. How many orders does he place with his supplier each year? c. How many gallons should Joe order from his supplier with each order to minimize the sum of the ordering and holding costs? (Round your answer to 3 decimal places.) d. Suppose Joe orders 2500 gallons each time he places an order with the supplier. d. What is the sum of the ordering and hoiding costs per gallon? (Round your answer to 2 decimal places.) Suppose Joe orders the quantity from part (c) that minimizes the sum of the ordering and hoiding 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? f. If Joe's supplier only accepts orders that are an integer multiple of 1000 gallons, how much should Joe order to minimize ordering and holding costs per gallon? Joe's supplier offers a 3.00 percent discount if Joe is willing to purchase 8000 g. gallons or more. What would Joe's total annual cost (purchasing, ordering, and holding) be if he were to take advantage of the discount Step by Step Solution
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