A restaurant uses 100 per week or 5,000 quart bottles of ketchup each year. The ketchup costs $3.00 per bottle and is served only in whole bottles because its taste quickly deteriorates. The restaurant figures that it costs $10.00 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes 3 weeks for an order to arrive. The restaurant operates 50 weeks per year. The restaurant would like to use an inventory system that minimizes inventory cost. The restaurant has figured that the most economical order size or EOQ is approx. 409 (rounding up the decimals).Approximately, what is the time between two orders (in terms of weeks)08060402None of the above A restaurant uses 100 per week or 5,000 quart bottles of ketchup each year. Theketchup costs $3.00 per bottle and is served only in whole bottles because its tastequickly deteriorates. The restaurant figures that it costs $10.00 each time an order isplaced, and holding costs are 20 percent of the purchase price. It takes 3 weeks for anorder to arrive. The restaurant operates 50 weeks per year. The restaurant would like touse an inventory system that minimizes inventory cost. The restaurant has figured thatthe most economical order size or EOQ is approx. 409 (rounding up the decimals).Approximately, what is the time between two orders (in terms of weeks)802None of the above

Given:The annual demand is given as 5,000 quart bottles of ketchup, which is D = 5,000. The ordering…

Answered: A restaurant uses 100 per week or 5,000…

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...

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A restaurant uses 100 per week or 5,000 quart bottles of ketchup each year. The ketchup costs $3.00 per bottle and is served only in whole bottles because its taste quickly deteriorates. The restaurant figures that it costs $10.00 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes 3 weeks for an order to arrive. The restaurant operates 50 weeks per year. The restaurant would like to use an inventory system that minimizes inventory cost. The restaurant has figured that the most economical order size or EOQ is approx. 409 (rounding up the decimals). Approximately, what is the time between two orders (in terms of weeks) 08 06 04 02 None of the above