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The optimum order quantity for blueberry in pounds is:

The optimum order quantity for blueberry in pounds is:

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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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. The optimum order quantity for blueberry in pounds is: Group of answer choices 50,100 53,245 30,000 45,300 42,250
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. The optimum order quantity for blueberry in pounds is: Group of answer choices 50,100 53,245 30,000 45,300 42,250
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