Sarah’s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 1000 kgs of palm oil per day on average. The supplier charges a $65 delivery fee per order (which is independent of the order size) and $5.75 per kg. Sarah’s annual holding cost is 25%. Assume she operates and sells 5 days per week, 52 weeks per year.
a. If Sarah wants to minimize her annual ordering and inventory holding costs, how much palm oil should she purchase with each order (in kgs)? not attempted kgs (Round to nearest integer.)
b. If Sarah orders 4250 kgs with each order, what would be the annual sum of ordering and holding costs not attempted (Round your answer to 3 decimal places.)
c. If Sarah orders 8200 kgs with each order, what would be sum of ordering and holding costs per kg sold not attemptedper kg
d. Sarah’s supplier is willing to sell her palm oil at a 5% discount if she purchases 15,000 kgs at a time. If she were to purchase 15,000 kgs per order what would be her annual sum of ordering and holding costs not attempted