Economic order quantity and total inventory cost for case

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1. The annual demand for a certain item is 22,500 pc/yr. One unit of the productcost $35.00, and the holding cost rate is 15%/yr. Setup time to produce a batch is 3.25 hr. The cost of equipment downtime during setup plus associate labor is $200/hr. Determine the economic order quantity and the total inventory cost for this case.

2. A small coffee shop has a single barista. Because the shop is? small, there are no tables or chairs.? Consequently, customers wait in a single line to order and receive their coffee and leave the shop as soon as their order is received. Customers arrive at the shop at the rate of 27per hour. It is estimated that the barista? needs, on? average, 60seconds? (exponentially distributed) to serve each customer.

a. The average server utilization is

Reference no: EM132282486

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