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The Woody Woodpecker Lumber Company processes 10,000 logs annually, operating 250 days per year. Immediately upon receiving an order, Woody's supplier begins delivery to the lumber mill at the rate of 60 logs per day. The lumber mill has determined that the ordering cost is $1,600 per order, and the cost of carrying logs in inventory before they are processes is $15 per log on an annual basis. Determine the following:
a. The optimal order size
b. The total inventory cost associated with the optimal order quantity
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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