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Sarah s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 1 ,
Sarahs Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs kilogram of palm oil per day on average. The supplier charges a $ delivery fee per order which is independent of the order size and $ per kilogram. Sarahs annual holding cost is percent. Assume she operates and sells five days per week, weeks per year.
If Sarah orders kilogram with each order, what would be the annual sum of the ordering and holding costs?
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