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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. What is the optimal number of orders per year?
1. 200
2. 100
3. 500
4. 300
5. 400
It is used when it doesn't make sense to look at the mean of such variables. Explain analysis of variance, multivariate statistics, and non-parametric methods.
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