A baker works 6 days a week for 49 weeks a year. Flour is delivered directly to the bakery with a charge of $7.5 for each delivery. The baker uses an average of 10 sacks of flour a day, for which he pays $12 a sack. The cost of holding flour is $2.25 per sack per year.
(a) What size of delivery should be baker use and what are the consequent variable cost?
(b) How much should be ordered if the flour has a shelf life of two weeks?