The optimum order quantity for blueberry in pounds is:
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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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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