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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 0
Sarahs Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs kg of palm oil per day, on average. The supplier charges a $ delivery fee per order which is independent of the order size and $ per kg Sarahs annual holding cost is percent. Assume she operates and sells days per week, weeks per year.
a If Sarah wants to minimize her annual ordering and inventory holding costs, how much palm oil should she purchase with each order in kilograms
b If Sarah orders kg with each order, what would be the annual sum of the ordering and holding costs?
c If Sarah orders kg with each order, what would be the sum of the ordering and holding costs per kilogram sold
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