Question: After reviewing the case, please ensure that your data match those below. All other details are correct... EXHIBIT 2 : COST DATA AVAILABLE FOR COCOA
After reviewing the case, please ensure that your data match those below. All other details are correct...
EXHIBIT : COST DATA AVAILABLE FOR COCOA POWDER
Holding cost of the costyear
Ordering cost INRorder
Quantity in kg Price INRkg
to
to
to
or more
EXHIBIT : COST DATA AVAILABLE FOR COCOA BUTTER
Holding cost
Ordering cost INRorder
Quantity in kg Price INRkg
to
to
to
or more
EXHIBIT : COST DATA AVAILABLE FOR DARK CHOCOLATE
Holding cost
Ordering cost INRorder
Quantity in kg Price INRkg
to
to
to
or more
EXHIBIT : COST DATA AVAILABLE FOR DRYFRUITS AND NUTS
Holding cost
Ordering cost INRorder
Quantity in kg Price INRkg
to
to
to
For this first question, assume you are the only customer of Toffee Inc., and all of the demand an average of rounded cartons per year is yours. This is not the case, but it makes these calculations easier...
What is the cost per order? note: in the case, it appears as a cost to Toffee Inc.
Select
INR
What is the cost per case?
Select
What is the holding cost percentage cited in the case?
Select
per month, or
Select
What is the annual holding cost in INR?
Select
What is the EOQ for you as the customer of Toffee Inc.?
Now you are part of Toffee Inc.. First, let's assess your annual demand.
Based on actuals, your total demand is cartons.
Each carton consists of
Select
bags, and each bag has
Select
bars.
So the total bars needed cartonsbagsbars is
Select
Each bar weighs
Select
grams.
Now you are part of Toffee Inc. and are planning on ordering your ingredients.
For cocoa powder:
Each bar requires
Select
grams of cocoa powder.
This means a total of
Select
gramskilograms of cocoa powder are needed. Formula: total bars required from above grams of material per bar. grams kg
There is a variable holding cost of
Select
and an ordering cost of
Select
INR.
After conducting an EOQ analysis with quantity discounts, you conclude that ordering
Select
kgsFor cocoa butter:
Each bar requires
Select
grams of cocoa butter.
This means a total of
Select
gramskilograms of cocoa butter are needed. Formula: total bars required from above grams of material per bar. grams kg
There is a variable holding cost of
Select
and an ordering cost of
Select
INR.
After conducting an EOQ analysis with quantity discounts, you conclude that ordering
Select
kgs at a time is the optimal solution.
For dark chocolate:
Each bar requires
Select
grams of dark chocolate.
This means a total of
Select
gramskilograms of dark chocolate are needed. Formula: total bars required from above grams of material per bar. grams kg
There is a variable holding cost of
Select
and an ordering cost of
Select
INR.
After conducting an EOQ analysis with quantity discounts, you conclude that ordering
Select
kgFor dry fruit and nuts:
Each bar requires
Select
grams of dry fruit and nuts.
This means a total of
Select
gramskilograms of dry fruit and nuts are needed. Formula: total bars required from above grams of material per bar. grams kg
There is a variable holding cost of
Select
and an ordering cost of
Select
INR.
After conducting an EOQ analysis with quantity discounts, you conclude that ordering
Select
kgs at a time is the optimal solution.
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