Question

1) With its new commercial contracts, Maryse's bakery will supply several cafes and restaurants in the region with breads, cakes and other pastries. Its pastry chef, Jeremy, therefore forecasts flour needs of 26 bags per week for the next year (1 bag = 50 kilos). The bakery operates 52 weeks a year. The supplier supplies the bakery with bags of flour at a price of $ 18 each. The supplier delivers his orders a week after having received them. Maryse estimates that each order costs $ 90 and its cost of capital is 20% per year. Jérémy would like us to order 26 pockets each week. However, Maryse believes that she would save in inventory cost if we ordered every two weeks instead. Calculate the total annual cost of inventory that results from the application of Jeremy's palitic.

Note 1: this total cost is the sum of the annual cost of orders and the annual cost of storage.

Note 2: Round your final result to zero decimal places.

2) Calculate the annual cost of inventory that results from applying Maryse's policy.

Note 1: this total cost is the sum of the annual cost of orders and the annual storage cost.

Note 2: Round your final result to zero decimal places.

a) 2527

b)3276

c) 5616

d) 2434

Answer 1

If, it's helpful,a thumbs up, pls