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A specialty coffeehouse sells Colombian coffee at a fair rate of 300 kilograms annually. the beans are purchased from a local supplier for $3 per kilogram. the coffeehouse estimates that it costs $50 in paperwork and labor to place an order for the coffee, and holding costs are based on a 10 percent annual interest rate. a. determine the optimal order quantity for Coffee? b. what is the time between the placement of orders? C. what is the average optimal annual cost? d. Suppose the coffee is ordered in a box of 50kg each. how many boxes should the coffee shop order?

A specialty coffeehouse sells Colombian coffee at a fair rate of 300 kilograms annually. the beans are purchased from a local supplier for $3 per kilogram. the coffeehouse estimates that it costs $50 in paperwork and labor to place an order for the coffee, and holding costs are based on a 10 percent annual interest rate. a. determine the optimal order quantity for Coffee? b. what is the time between the placement of orders? C. what is the average optimal annual cost? d. Suppose the coffee is ordered in a box of 50kg each. how many boxes should the coffee shop order?

Practical Management Science
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 specialty coffeehouse sells Colombian coffee at a fair rate of 300 kilograms annually. the beans are purchased from a local supplier for $3 per kilogram. the coffeehouse estimates that it costs $50 in paperwork and labor to place an order for the coffee, and holding costs are based on a 10 percent annual interest rate. a. determine the optimal order quantity for Coffee? b. what is the time between the placement of orders? C. what is the average optimal annual cost? d. Suppose the coffee is ordered in a box of 50kg each. how many boxes should the coffee shop order? A- B. 問
Transcribed Image Text:A specialty coffeehouse sells Colombian coffee at a fair rate of 300 kilograms annually. the beans are purchased from a local supplier for $3 per kilogram. the coffeehouse estimates that it costs $50 in paperwork and labor to place an order for the coffee, and holding costs are based on a 10 percent annual interest rate. a. determine the optimal order quantity for Coffee? b. what is the time between the placement of orders? C. what is the average optimal annual cost? d. Suppose the coffee is ordered in a box of 50kg each. how many boxes should the coffee shop order? A- B. 問
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