Business, 28.08.2019 01:30 alexkoval1231

You work at deliwine, a wine retailer. deliwine sources one of their best selling wines, beauroux, from a france wine distributor. the cost of placing an order is $ 513 and the annual holding cost rate of deliwine is 14 %. the lead time is 2 weeks and deliwine only pays for the goods when the shipment arrives at their distribution center. assume that there are 48 weeks in a year. the annual demand for beauroux is very stable at 34954 bottles. the costs of beauroux is $ 78 per bottle. question: beauroux is packed in a special bottle that requires very careful handling. for large deliveries, some extra employees are needed to unpack. you pointed to your manager that there is an extra handling cost of $0.34 for each bottle of beauroux if the order for beauroux is larger than 409 bottles. (you can consider that each bottle costs $0.34 more if the order for beauroux is larger than 409.)what is the order size that will minimize total costs considering the extra handling costs?

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You work at deliwine, a wine retailer. deliwine sources one of their best selling wines, beauroux, f...

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