Hull Baking Company Uses 250 000 Lb Of Sugar Annually In Its Cakes And Pastries

/in /by

Hull Baking Company uses 250,000 lb of sugar annually in its cakes and pastries. The company can order the sugar in 100 lb bags, at the cost of $19.50 per bag, delivered. The cost of preparing and sending an order is $50. The storage and handling costs amount to $2 per bag per year, based on average inventory. The cost of capital for Hull is 12%. Calculate the optimal size of an order.

240 bags

Need your ASSIGNMENT done? Use our paper writing service to score good grades and meet your deadlines.


Order a Similar Paper Order a Different Paper