Important information about optimal order quantitya

Assignment Help Business Management

Reference no: EM13369003

Important information about Optimal Order Quantity

A specialty coffeehouse sells Colombia coffee at a fairly steady rate of 280 pounds annually. The beans are purchased from local supplier for $2.40 per pound. The coffeehouse estimates that it cost $45 in paperwork and labor to place an order for the coffee, and holding costs are based on a 20% annual interest rate.

a. Determine the optimal order quantity for Colombian coffee

b. What is the time between placement of orders?

c. What is the average annual cost of holding and setup due to this item?

d. If replenishment lead time is three weeks, determine the reorder level based on the on-hand inventory.

e. What possible benefits/problems can you foresee with implementing JIT in the coffeehouse process?

To receive full credit for this assignment you must show assumptions, calculations and answers to all questions.

Reference no: EM13369003

Questions Cloud

Characterize japanese people behavior after the earthquake : characterize japanese people behavior after the earthquake from a safety point of viewhow would you characterize the

Are us copyrights protected overseas what if a country does : are us copyrights protected overseas? what if a country does agree to a treaty? does china abide by international

What is the concept of bailmentwhat is the concept of : what is the concept of bailment?what is the concept of bailment? why is a bailment for a fixed term or for the sole

Employees with disabilities and outdoor training to develop : employees with disabilities and outdoor training to develop teamworkoutdoor teamwork building programs have become

Important information about optimal order quantitya : important information about optimal order quantitya specialty coffeehouse sells colombia coffee at a fairly steady rate

Undue influence differentiated from duress and frauddefine : undue influence differentiated from duress and frauddefine undue influence with regards to contracts. how does undue

Mcgregors theory x and theory y as it relates to workas you : mcgregors theory x and theory y as it relates to workas you read about douglas mcgregors theory x and theory y in the

How to gain power and influence at workfind out how you : how to gain power and influence at workfind out how you score in relation to gaining power and influence at work by

What else do you think could be done to eliminate : what else do you think could be done to eliminate discrimination in the workplace?many organizations have established

User Account

All Pages