What is the increase in their EOQ if all of the model parameters (except the number of days in a year) double?
Kushie's Coffee in Bangalore is a quaint establishment nestled near MG Road in the central business district. It serves coffee and fruit cake to a clientele that has been enjoying these products for over fifty years. The demand for coffee beans is 6600 cases per year (each case has 24 ten-pound bags). It would be disastrous for them to run out of coffee, so they keep a safety stock of 30 cases. The cases cost $4800 and it costs $5 per case to order coffee. As coffee is a perishable product, the holding cost is fairly high at $40/case/year. The lead time to receive an order is seven days. Kushie's is open 300 days a year.
A) 100%
B) 33%
C) 41%
D) 50%
Answer: C
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In a store such as an electronics store, a cashier and a customer may conspire to steal items in the following manner:
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