d If Bruno's storage vessel can hold only 3500 kg of milk, what would be Bruno's annual ordering and holding costs? If Bruno's storage vessel can hold only 6500 kg of milk, what would be Bruno's annual ordering and holding costs? Bruno's supplier's truck can cary 20,000 kg of milk. The supplier does not want to deliver to more than three customers with each truck. Thus, the supplier f. requires a minimum order quantity of 6500 kg. If Bruno orders the minimum amount, what would be the sum of his annual ordering and holding costs? Assume he has a storage vessel large enough to hold 6500 kg.

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PA 12-4 (Algo) Bruno Fruscalzo decided to start a small..
Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier
charges $0.50 per kg of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.04
per kg per month. He needs 9,000 kg of milk per month.
a. Suppose Bruno orders 9750 kg each time. What is his average inventory (in kg)?
4,875 kgs
(Round your answer to 1 decimal place. )
b Suppose Bruno orders 6250 kg each time. How many orders does he place with
* his supplier each year?
17.2 orders
How many kg should Bruno order from his supplier with each order to minimize
C: the sum of the ordering and holding costs?
2,598 kgs
If Bruno's storage vessel can hold only 3500 kg of milk, what would be Bruno's
d. annual ordering and holding costs?
If Bruno's storage vessel can hold only 6500 kg of milk, what would be Bruno's
annual ordering and holding costs?
е.
Bruno's supplier's truck can carry 20,000 kg of milk. The supplier does not want
to deliver to more than three customers with each truck. Thus, the supplier
f. requires a minimum order quantity of 6500 kg. If Bruno orders the minimum
amount, what would be the sum of his annual ordering and holding costs?
Assume he has a storage vessel large enough to hold 6500 kg.
(Round your answer to 3 decimal places.)
Bruno's supplier offers a 2 percent discount when a customer orders a full truck,
which is 20,000 kg. Assume Bruno can store that quantity and the product will
9. not spoil. If Bruno orders a full truck, what would be the inventory holding and
ordering cost incurred per kg of milk?
per kg of milk
Transcribed Image Text:PA 12-4 (Algo) Bruno Fruscalzo decided to start a small.. Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.50 per kg of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.04 per kg per month. He needs 9,000 kg of milk per month. a. Suppose Bruno orders 9750 kg each time. What is his average inventory (in kg)? 4,875 kgs (Round your answer to 1 decimal place. ) b Suppose Bruno orders 6250 kg each time. How many orders does he place with * his supplier each year? 17.2 orders How many kg should Bruno order from his supplier with each order to minimize C: the sum of the ordering and holding costs? 2,598 kgs If Bruno's storage vessel can hold only 3500 kg of milk, what would be Bruno's d. annual ordering and holding costs? If Bruno's storage vessel can hold only 6500 kg of milk, what would be Bruno's annual ordering and holding costs? е. Bruno's supplier's truck can carry 20,000 kg of milk. The supplier does not want to deliver to more than three customers with each truck. Thus, the supplier f. requires a minimum order quantity of 6500 kg. If Bruno orders the minimum amount, what would be the sum of his annual ordering and holding costs? Assume he has a storage vessel large enough to hold 6500 kg. (Round your answer to 3 decimal places.) Bruno's supplier offers a 2 percent discount when a customer orders a full truck, which is 20,000 kg. Assume Bruno can store that quantity and the product will 9. not spoil. If Bruno orders a full truck, what would be the inventory holding and ordering cost incurred per kg of milk? per kg of milk
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