Company makes apple butter to supply local vendors

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Reference no: EM131032022

A company makes apple butter to supply local vendors. The manufacturing company can make 330 pounds of apple butter per day and demand from vendors is 190 pounds per day. Each time the manufacturing company makes apple butter, it costs $176 to set up the production process. The annual cost of carrying a pound of apples in a refrigerated storage area is $6.50. Determine the optimal ordering quantity and the minimum total annual inventory cost.

Reference no: EM131032022

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