Multiple Choice
Use this information to answer the following questions.
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.
-Refer to the information above.What is the optimal number of orders per year?
A) 200
B) 100
C) 500
D) 300
E) 400
Correct Answer:

Verified
Correct Answer:
Verified
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