A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 60 pounds of Kona coffee beans a day. (Demand can be assumed to be distributed normally with a standard deviation of 15 pounds per day). After ordering (fixed cost $15 per order), beans are always delivered from Hawaii in exactly 4 days. Per-pound annual holding costs for the beans are $3. What is the economic order quantity (EOQ) for Kona coffee beans? (round your response to the nearest whole number) 346 24

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
icon
Concept explainers
Topic Video
Question
Question 20
4 pts
A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 60 pounds of Kona coffee
beans a day. (Demand can be assumed to be distributed normally with a standard deviation of 15 pounds per day). After
ordering (fixed cost $15 per order), beans are always delivered from Hawaii in exactly 4 days. Per-pound annual holding
%3D
costs for the beans are $3.
What is the economic order quantity (EOQ) for Kona coffee beans? (round your response to the nearest whole number)
346
24
385
800
12.000
Transcribed Image Text:Question 20 4 pts A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 60 pounds of Kona coffee beans a day. (Demand can be assumed to be distributed normally with a standard deviation of 15 pounds per day). After ordering (fixed cost $15 per order), beans are always delivered from Hawaii in exactly 4 days. Per-pound annual holding %3D costs for the beans are $3. What is the economic order quantity (EOQ) for Kona coffee beans? (round your response to the nearest whole number) 346 24 385 800 12.000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Inventory management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.