12.9
The small boatyard WhiteKayaks are building epoxy- kayaks, lastyear they built 156. Each of those requires 12 kg of epoxy,purchased in 6 kg barrels at S170 each, freight cost is $18 pershipment plus $1 per kg. The annual carrying cost is estimated to20% of the value.

a) If the purchase policy is to buy 20 barrels eachtime, how much time can be spent on administrative work if theorder-quantity should be considered optimal.The boat-builder costs$25/h

b) If time spent is 30 minutes, what Would be theoptimal order- quantity?