2. Oxford Breeze School is gearing up to start their new session. Just like other grammar...

   

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2. Oxford Breeze School is gearing up to start their new session. Just like other grammar schools, they too provide goodie bags to their students. To source the bags, they have asked for quotations from their long-term supplier. The supplier's quote has given below: No. of Goodies 800 801- 1200 1200+ Price $8 $7 $6 The school operates 250 days per year. Daily usage rate is 35 goodies and ordering costs are $50. Carrying costs is $2. a) b) c) Determine an order quantity that will minimize the Total Cost. (3 marks) Figure out the Number of orders. (1 mark) If lead time is 7 days, at what point should the company re-order? (1 mark) 2. Oxford Breeze School is gearing up to start their new session. Just like other grammar schools, they too provide goodie bags to their students. To source the bags, they have asked for quotations from their long-term supplier. The supplier's quote has given below: No. of Goodies 800 801- 1200 1200+ Price $8 $7 $6 The school operates 250 days per year. Daily usage rate is 35 goodies and ordering costs are $50. Carrying costs is $2. a) b) c) Determine an order quantity that will minimize the Total Cost. (3 marks) Figure out the Number of orders. (1 mark) If lead time is 7 days, at what point should the company re-order? (1 mark)

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