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Whole Foods sells Protein Bars. Demand for Cliff Protein Bars is 500 bars per week. Whole Foods incurs a fixed cost of $100 for each
Whole Foods sells Protein Bars. Demand for Cliff Protein Bars is 500 bars per week. Whole Foods incurs a fixed cost of $100 for each replenishment order and has a holding cost of 30 percent per protein bar. Given a cost of $2 per Protein Bar, how much should Whole Foods order in each replenishment order? If a trade promotion lowers the price of Cliff Protein Bars to $1.80 for a month, how much should Whole Foods order given the short-term price reduction?
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