Sarah's Organic Soap Company makes four kinds of organic liquid soap: regular, lavender, citrus, and tea tree.The demand for the four scents are 150, 120, 75, and 50 kg per hour respectively. Sarah's production processcan produce any soap at the rate of 450 kg per hour, but 1.5 hours are needed to switch between scents. Duringthose switchover times, the process doesn't produce any soap. Sarah wants to choose a production schedulethat (i) cycles repeatedly through the four scents, (ii) meets the required demand and (iii) minimizes the amountof inventory held.Sarah needs to purchase organic palm oil to make her soaps. She needs 1,000 kg of palm oil perday on average. The supplier charges a $60 delivery fee per order (which is independent of theorder size) and $4.75 per kg. Sarah's annual holding cost is 25%. Assume 52 weeks per year and 5days per week. If Sarah wants to minimize inventory holding and ordering costs, how much palm oilshould she purchase with each order (in kg)? (Round your answer to the nearest wholenumber.)5,126 kg5,2265,3265.426

Sarah needs to purchase organic palm oil to make her soaps. She needs 1,000 kg of palm oil per day on average. The supplier charges a $60 delivery fee per order (which is independent of the order size) and $4.75 per kg. Sarah's annual holding cost is 25%. Assume 52 weeks per year and 5 days per week. If Sarah wants to minimize inventory holding and ordering costs, how much palm oil should she purchase with each order (in kg)? (Round your answer to the nearest whole number.)

Sarah needs to purchase organic palm oil to make her soaps. She needs 1,000 kg of palm oil per day on average. The supplier charges a $60 delivery fee per order (which is independent of the order size) and $4.75 per kg. Sarah's annual holding cost is 25%. Assume 52 weeks per year and 5 days per week. If Sarah wants to minimize inventory holding and ordering costs, how much palm oil should she purchase with each order (in kg)? (Round your answer to the nearest whole number.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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