Y5 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 suppliercharges $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 $0.04per 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)?(Round your answer to 1 decimal place.)b.Suppose Bruno orders 6250 kg each time. How many orders does he place withhis supplier each year?How many kg should Bruno order from his supplier with each order to minimizethe sum of the ordering and holding costs?d.If Bruno's storage vessel can hold only 3500 kg of milk, what would be Bruno'sannual ordering and holding costs?kgsorderskgs

In order to meet consumer demand while reducing holding costs and stockouts (shortages), inventory…

Answered: PA 12-4 (Algo) Bruno Fruscalzo decided…

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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