A civet coffee company produces 700 bags of coffee daily. The coffee is shipped at a constant rate of 120 bags daily and works for 360 days annually. The setup cost to produce the coffee is €250.00 and the annual holding rate is 25%. The company estimates that the total cost of a bag of coffee is €85.00.

Calculate:

1. The annual demand                                                                                                                       
2. The EPQ                                                                                                                                           
3. The maximum inventory level                                                                                                    
4. Annual production cost                                                                                                                
5. Annual holding cost   

Answer rating: 100% (QA)

Here are the calculations requested Annual demand 43200 bagsyear daily demand number of days EPQ Eco... View the full answer