Demand during lead time is assumed to be uniform

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McBurger orders ground meat at the start of each week to cover the week’s demand which is 300 lbs. The fixed cost per order is $20. It costs about $0.01 per lb. per day to refrigerate and store the meat. It is estimated that the shortage cost is $0.15 per lb. The demand during lead time is assumed to be uniform between 20-30 lbs. Determine the optimal ordering policy for McBurger.

Reference no: EM131422086

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Demand during lead time is assumed to be uniform : McBurger orders ground meat at the start of each week to cover the week’s demand which is 300 lbs. The fixed cost per order is $20. It costs about $0.01 per lb. per day to refrigerate and store the meat. It is estimated that the shortage cost is $0.1..

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