Problem
Rico needs 625 lbs of roast beef per week on average to make sandwiches for his cafe. The supplier charges a $11 delivery fee per order (which is independent of the order size) and $11.24 per lb. Rico's annual holding cost is 28%. Assume 52 weeks per year. If Rico wants to minimize inventory holding and ordering costs, how much roast beef should he purchase with each order (in lbs)?