Question: A hot dog trailer sells the quantities shown in Table 1 per day. Each hot dog has a retail price of 3.39 of which 13%
A hot dog trailer sells the quantities shown in Table 1 per day. Each hot dog has a retail price of 3.39 of which 13% is vat and the ingredient costs are 0.81. The nearest supermarket delivers orders for the ingredients at a cost of 4.5 taking 60 minutes. The trailer has enough storage space for 300 hot dogs, and spends in the fresh storage of its ingredients 0.02 in energy per hot dog. The fixed expenses for the license to sell the trailer are $4 per day. Consider that the trailer is open for sale to the public about 6 hours a day. Consider also that the owner of the trailer provides loan-sharking services and can earn weekly interest of 5% on his investments. Considering the scenario presented, and knowing that the minimum desired service level is 97% indicate: Economic order quantity Order point Average number of missing hot dogs (sales not realized due to stock outage)
Day # Monday 92 Tuesday 80 Wednesday 64 Thursday 118 Friday 207 Saturday 237 Total Week 798
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