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 $0.03 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 80-90 lbs.
Determine the optimal ordering policy for McBurger.