How much chicken should she purchase with each order

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Reference no: EM133783234

Question

Helen needs 1459 kgs of chicken per day on average to make enchiladas for her store. The supplier charges a $68 delivery fee per order (which is independent of the order size) and $3.90 per kg. Helen's annual holding cost is 27%. Assume 52 weeks per year and 7 days per week. If Helen wants to minimize inventory holding and ordering costs, how much chicken should she purchase with each order (in kgs)? Provide your answer as an integer value.

Reference no: EM133783234

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