Explain what is the optimal opder quantity for coffee, Operation Management

Assignment Help:

A special coffeehouse sells Colombian coffee at a fairly steady reat of 30 pounds per month. The beans are purchased from a local supplier for $3.20 per pound. The coffeehouse estimates that it costs about $60 in paperwork and labour to place an order for the coffee, and the holding costs are based on a 15% annual interest rate.

a) What is the optimal opder quantity for Colombian coffee?

b) If the replenishment lead time in 10.6 months, what is the re-order level based on the on-hand inventory?

c) What is the average annual cost of holding and setup cost due to the optimal order?


Related Discussions:- Explain what is the optimal opder quantity for coffee

Explain the financial flexibility workforce, Explain the financial flexibil...

Explain the financial flexibility workforce. Financial flexibility can be accomplished by performance associated pay systems for illustration when production staff are paid

Explain disadvantages of marketing a global product, Many firms try to mark...

Many firms try to market the same product as is in many different markets. The product is essentially the same, the only differences may be in packaging and messaging. What are

Describe you can conduct outside research to locate info, In a 1-2 page pap...

In a 1-2 page paper discuss the following case study by applying the knowledge you gained through this week's studies. If necessary, you can conduct outside research to locate info

Explain the three steps in completing a job analysis, As an entrepreneur, h...

As an entrepreneur, how would you go about doing a job analysis for the first employee you are going to hire in your new business? What are the three steps in completing a job anal

Describe different roles people play in work groups, Please discuss differe...

Please discuss different roles people play in work groups? Please share the role you predominantly played in project or work groups. Make this a very short answer

Explain process of designing a database, We are agree that the user should ...

We are agree that the user should be involved in the design of the database. Class, how would you go about the process of designing a database? What processes are involved?

Explain what types of strategic plans must shoemaker make, Kathryn Shoemake...

Kathryn Shoemaker established Grandmothers Chicken Restaurant in Middleburg five years ago. It features a unique recipe for chicken,just like grandmother used to make.The facility

Describe modern healthcare systems, Discuss the Chaos Theory (Be sure to re...

Discuss the Chaos Theory (Be sure to read the lectures concerning this theory, as well as go through the additional links) in relation to the health care system today. In addition,

Explain assembly of power steering pumps, A small assembly line for the ass...

A small assembly line for the assembly of power steering pumps needs to be balanced. Exhibit 8.11 in the text is the precedence diagram. The cycle time is determined to be 1.5 minu

Describe perfecting project management, Read the required article "Perfecti...

Read the required article "Perfecting Project Management" by Drew Robb. List three ways a project manager could use the data described in the article to keep the project on track a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd