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Zuke's Nukes is a retailer of organic microwavable entrees. They purchase frozen meals in batches from a supplier and then sell them to customers
Zuke's Nukes is a retailer of organic microwavable entrees. They purchase frozen meals in batches from a supplier and then sell them to customers in their store. It costs $0.35 to store one frozen meal for a year. To reorder more batches of meals from their supplier, Zuke's Nukes pays a fixed fee of $2.25 per batch as well as $0.75 per meal. They sell 500 meals each year. Find how large their batch sizes should be for each of their orders from the supplier so that Zuke's Nukes can minimize their total inventory costs. Approximately how many times will they need to order? (round to nearest order) A grocery store orders frozen pies in batches from a bakery and sells them in the grocery store. Storing one frozen pie for a year costs $0.75. When the grocery store reorders pies, there is a fixed cost of $3.25 per order as well as $0.65 per pie. Each year, they sell 750 frozen pies. What is the optimal number of pies to order in each order to minimize their total inventory costs.
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