If company a only has room to hold 25 cases of fertilizer, Operation Management

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If company a only has room to hold 25 cases of fertilizer

Company A purchases cases of fertilizer for its lawn-care business from a supplier who charges $30 per order and $50 per case.

Each case consists of five bags of fertilizer. Company A needs 2000 bags of fertilizer a year. Company A's annual holding costs are 30%.

If Company A only has room to hold 25 cases of fertilizer, how many cases should Company A order each time to minimize the total holding and ordering cost?

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Operation Management: If company a only has room to hold 25 cases of fertilizer

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