How many orders per year do they place if they order at double their EOQ quantity?
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) 40.6
B) 81.2
C) 162.5
D) 325
Answer: B
You might also like to view...
Leadership development is enhanced when experience involves the three processes of:
A. stopping, looking, and listening. B. perception, attribution, and learning. C. action, observation, and reflection. D. action, behavior, and consequence.
An LLC must maintain which of the following contacts with the state where it was formed? An agent for service of process An attorney for representation in lawsuits An office
A. I only. B. I and III only. C. II and III only. D. I, II, and III.