Joe needs to purchase malt for his micro-brew production, His supplier charges $35 per delivery (no matter how much is delivered) and $1.20 per gallon of malt. Joe's annual holding cost per unit is 35% of the cost value of the unit. Joe uses 5000 gallons of malt per week. Assume that Joe operates 50 weeks per year, how many gallons d whole number) should Joe arder from his supplier with each order?

Joe needs to purchase malt for his micro-brew production, His supplier charges $35 per delivery (no matter how much is delivered) and $1.20 per gallon of malt. Joe's annual holding cost per unit is 35% of the cost value of the unit. Joe uses 5000 gallons of malt per week. Assume that Joe operates 50 weeks per year, how many gallons d whole number) should Joe arder from his supplier with each order?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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