A restaurant requires a particular type of seafood for its menu. The seafood costs $20 per...

 

Transcribed Image Text:

A restaurant requires a particular type of seafood for its menu. The seafood costs $20 per pound, and the restaurant uses an average of 20 pounds per week (including working days and weekends). The ordering cost for the seafood is $150 per order, and the holding cost is estimated to be the 25 percent of the seafood's unit value per year. The restaurant operates for 250 days per year. Please calculate the a) EOQ, b) total ordering and holding costs per year, c) number of orders placed in one year, and d) number of working days between two orders. (Hint: To calculate the annual demand, simply multiply the weekly demand by the number of weeks per year. The 250 days will only be used to convert the ratio of part d to working days.) Upload Choose a File A restaurant requires a particular type of seafood for its menu. The seafood costs $20 per pound, and the restaurant uses an average of 20 pounds per week (including working days and weekends). The ordering cost for the seafood is $150 per order, and the holding cost is estimated to be the 25 percent of the seafood's unit value per year. The restaurant operates for 250 days per year. Please calculate the a) EOQ, b) total ordering and holding costs per year, c) number of orders placed in one year, and d) number of working days between two orders. (Hint: To calculate the annual demand, simply multiply the weekly demand by the number of weeks per year. The 250 days will only be used to convert the ratio of part d to working days.) Upload Choose a File

Answer rating: 100% (QA)

To calculate the EOQ Economic Order Quantity total ordering and holding costs per year the number of ... View the full answer