You run a Ramen wholesaler. Sales at your wholesaler average about 20,000 boxes a month and you order an amount equals to the sales volume.

You are supplied from a Ramen manufacturer by truck. A truck driver charges you $200 for unloading Ramen boxes and an additional delivery fee of $1,000 is prepaid by a Ramen manufacturer.

A production cost at a manufacturer is $3/box and a manufacturer sells each box of Ramen to you at a price of $5. Both you and a manufacturer use an an nual holding cost of 20%.

1) Whats your order size and the cost for that? Whats a manufacturers cost?

2) I take over the Ramen factory. I want to save costs. What should I do?

3) Relative to (2), whats my option to meet the optimal order quantity?

PLEASE USE EXCEL