A coffee shop uses approximately 250 pounds of a particular type of coffee every week. The shop

Question:

A coffee shop uses approximately 250 pounds of a particular type of coffee every week. The shop is open 52 weeks a year. The annual carrying charge for the coffee is 20%. If 1 pound of coffee costs the shop $12.00 and the cost associated with each order is $39, how many pounds of this coffee should be ordered each time an order is placed if the shop wants to minimize its total annualized inventory-related costs?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managing Supply Chain and Operations An Integrative Approach

ISBN: 978-0132832403

1st edition

Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb

Question Posted: