The demand for an organic item in a whole foods market, Operation Management

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The demand for an organic item in a whole foods market

The demand for an organic item in a Whole foods Market store is constant, at 10 units a week. The fixed order cost is $4.50 with no lead time. The holding cost equals to 15% of inventory value annually. The item cost $1.50 each and sell for 5.00

A) How many mugs should we be ordered to minimize the total cost?

B) What is the total cost?

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Operation Management: The demand for an organic item in a whole foods market

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