please answer in 30 mins and all parts. The Cocoa Elegance Limited (TCEL) purchasescocoa from Honest to Goodness Plantations (HGP)in Toco, Trinidad. HGP sells cocoa at three differentprices, depending on the size of the order, as shownin Table 9 below:Table 9. Honest to Goodness Plantations - CocoapricesWeight of CocoaPrice ($USD)Less than 45 kilograms$18 per kilogram45 to 450 kilograms$17 per kilogram,More than 450 kilograms16 per kilogramThe cost to place an order at TCEL is $40. Annualdemand is 3,000 units. The holding (or carrying) costis 25 percent of the material price.a) Calculate the EOQ at each Price Break.b) Indicate which EOQS are feasible and those whichare not feasible.c) What is the economic order quantity that TCELshould buy each time?

The optimal quantity a corporation should purchase to minimize inventory expenditures, such as…

Answered: a) Calculate the EOQ at each Price…

a) Calculate the EOQ at each Price Break. b) Indicate which EOQS are feasible and those which are not feasible. c) What is the economic order quantity that TCEL should buy each time?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Question

please answer in 30 mins and all parts.

The Cocoa Elegance Limited (TCEL) purchases
cocoa from Honest to Goodness Plantations (HGP)
in Toco, Trinidad. HGP sells cocoa at three different
prices, depending on the size of the order, as shown
in Table 9 below:
Table 9. Honest to Goodness Plantations - Cocoa
prices
Weight of Cocoa
Price ($USD)
Less than 45 kilograms
$18 per kilogram
45 to 450 kilograms
$17 per kilogram,
More than 450 kilograms
16 per kilogram
The cost to place an order at TCEL is $40. Annual
demand is 3,000 units. The holding (or carrying) cost
is 25 percent of the material price.
a) Calculate the EOQ at each Price Break.
b) Indicate which EOQS are feasible and those which
are not feasible.
c) What is the economic order quantity that TCEL
should buy each time?

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