Total cost of ordering and carrying sugar


A bakery buys sugar in 15-pound bags. The bakery uses 5000 bags of sugar each year. Carrying costs are $20 per bag per year. Ordering costs are estimated at $5 per order. Assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags. It takes 5 days for each order of sugar to be filled. What is the total cost of ordering and carrying sugar?

$50
$100
$25
$1000
$500

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: Total cost of ordering and carrying sugar
Reference No:- TGS0723171

Expected delivery within 24 Hours