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Tastee Mart sells Frostee Flakes. Demand for Frostee Flakes is 500 boxes per week. Tastee Mart has a holding cost of 30 percent and incurs
Tastee Mart sells Frostee Flakes. Demand for Frostee Flakes is 500 boxes per week. Tastee Mart has a holding cost of 30 percent and incurs a fixed cost of $100 for each replenishment order it places for Frostee Flakes. Given that cost is $2 per box of Frostee Flakes, how much should Tastee Mart order in each replenishment lot? Suppose working weeks in a year are 40 weeks. What is the minimum total cost? Total cost includes holding cost, ordering cost and unit cost (purchasing cost). Show all your work
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