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Business
Operations Management
The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics: Sales = 8 cases per week Ordering cost = $10 per order Carrying charge = 20 percent per year Item cost = $80 per case Given the above information, the EOQ and total cost are:    A 40 percent increase in demand changes the EOQ to _____ cases at a total cost of _____    A 20 percent increase in carrying charges change the EOQ to _____ cases at a total cost of _____

The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics: Sales = 8 cases per week Ordering cost = $10 per order Carrying charge = 20 percent per year Item cost = $80 per case Given the above information, the EOQ and total cost are:    A 40 percent increase in demand changes the EOQ to _____ cases at a total cost of _____    A 20 percent increase in carrying charges change the EOQ to _____ cases at a total cost of _____

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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The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics:

  • Sales = 8 cases per week
  • Ordering cost = $10 per order
  • Carrying charge = 20 percent per year
  • Item cost = $80 per case

Given the above information, the EOQ and total cost are:

 

 A 40 percent increase in demand changes the EOQ to _____ cases at a total cost of _____

 

 A 20 percent increase in carrying charges change the EOQ to _____ cases at a total cost of _____

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