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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 5 0

Sarahs Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 500 kilograms of palm oil per day on average with a standard deviation of 500. The supplier charges a $54 delivery fee per order (which is independent of the order size) and the price to purchase is $4.25 per kilogram. Sarahs annual holding cost is $0.64. Assume she operates and sells five days per week, 52 weeks per year. Her Lead time is one week and she desires a service level of 95%(Z=1.64)
At what inventory level should she place an order? Answer to nearest kilogram

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