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1.
Annual ordering cost = (D/Q)*S
Vodka
D = 1,500, Q = 200, S = (30 minutes)($20/hour) = $10
(1,500/200)*(10) = $75
Scotch
D = 975, Q = 100, S = $10
(975/100)*(10) = $97.5
Rum
D = 255, Q = 50 S = $10
(255/50) * (10) = $51
Total = $223.5
2.
Annual holding cost = (...
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