Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 16

The A-to-Z Office Supply Company is open from 8:00 A.M. to 6:00 P.M., and it receives 200 calls per day for delivery orders. It costs A-to-Z $20 to send out its trucks to make deliveries. The company estimates that each minute a customer spends waiting for an order costs A-to-Z $0.20 in lost sales.
a. How frequently should A-to-Z send out its delivery trucks each day Indicate the total daily cost of deliveries.
b. If a truck could carry only six orders, how often would deliveries be made, and what would be the cost