For the EOQ policy, the total annual stocking cost (the sum of the holding and ordering costs) for blueberry is: 9065 $1.065
For the EOQ policy, the total annual stocking cost (the sum of the holding and ordering costs) for blueberry is: 9065 $1.065
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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Question
![Newstar Foods is a company manufacturing cereal. It has an annual demand for two flavors:
Strawberry cereal and Blueberry cereal of 592.600 and 608,030 boxes respectively. Each box
contains 18 ounces of cereal, and exactly half of the weight of the cereal comes from its fruit
(strawberry or blueberry), and both fruits are imported from Japan. Newstar Foods has computed
its ordering cost as US$60 per order. They pay their Japanese supplier 12.5 US cents per pound
there are 16 ounces in a pound) of strawberry and 10 cents per pound of blueberry. The annual
holding cost of either fruit is 20% of the value of the fruit.
Answer the following questions based on the data above. Choose the closest number if needed.
For the EOQ policy, the total annual stocking cost (the sum of the holding and ordering costs) for
blueberry is
SP06
OS1.065
$1.150
$1.210
O$P00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58ce470f-f3ec-483c-be99-b7b55f426c96%2Ff2511a8b-5e08-4409-a315-b4901732e4c1%2Frxa27gq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Newstar Foods is a company manufacturing cereal. It has an annual demand for two flavors:
Strawberry cereal and Blueberry cereal of 592.600 and 608,030 boxes respectively. Each box
contains 18 ounces of cereal, and exactly half of the weight of the cereal comes from its fruit
(strawberry or blueberry), and both fruits are imported from Japan. Newstar Foods has computed
its ordering cost as US$60 per order. They pay their Japanese supplier 12.5 US cents per pound
there are 16 ounces in a pound) of strawberry and 10 cents per pound of blueberry. The annual
holding cost of either fruit is 20% of the value of the fruit.
Answer the following questions based on the data above. Choose the closest number if needed.
For the EOQ policy, the total annual stocking cost (the sum of the holding and ordering costs) for
blueberry is
SP06
OS1.065
$1.150
$1.210
O$P00
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