Joe needs to purchase malt for his micro-brew, Operation Management

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Joe needs to purchase malt for his micro-brew

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. Joe’s annual holding cost per unit is 35% of the dollar value of the unit. Joe uses 5000 gallons of malt per week. Assume that Joe operates 50 weeks per year, how many gallons (round up to the whole number) should Joe order from his supplier with each order? PLEASE SHOW CALCULATIONS.

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Operation Management: Joe needs to purchase malt for his micro-brew

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