The Petroco Company uses a highly toxic chemical in one of its
manufacturing processes. It must have the product delivered by
special cargo trucks designed for safe shipment of chemicals. As
such, ordering (and delivery) costs are relatively high, at $2,600
per order. The chemical product is packaged in 1-gallon plastic
containers. The cost of holding the chemical in storage is $50 per
gallon per year. The annual demand for the chemical, which is
constant over time, is 2,000 gallons...