Answer based on the following information & formula sheet:

Medro & Mariana added Arabic Coffee to their hot drinks. Because the coffee was so delicious, customers asked Medro why dont you sale the coffee blend in packs of kilo. They thought this was a great idea.
They decided to sell each pack for 0.75 KD.
They decided to use the EOQ inventory model to manage the inventory for the packs of Arabic coffee.
(M&M) is open 50 weeks each year and 7 days each week.
They estimated the weekly demand of coffee packs to be around 21 packs. This means that the annual demand for the coffee packs will = (21)x(50) = 1050 packs per year.
It costs 1.50 KD to hold one pack of coffee in inventory for one year.
They buy the special Arabic coffee blend packs from their mother and it costs them 10 KD each time they place an order for the coffee.
Their mother guarantees to deliver the order within 5 days once she receives a new

NOTE: EOQ= 118.32 packs/order & 8.87 orders/yr & Annula holding cost for this order size 88.74 KD/yr 1) What is the time between placing orders close to?

a. 16.73 days

b. 39.46 days

c. 20 days

d. not enough information to answer the question

2) How many days does it take to use up the entire order after it arrives?

a. not enough information to answer the question

b. 16.73 days

c. 39.46 days

d. 7 days

3) What will the total demand on coffee packs be during the lead time period?

a. 1050 packs

b. 50 packs

c. 5 packs

d. 15 packs

4) After how many days from the arrival of an order will the next order be closely placed?

a. 34.46 days

b. 16.73 days

c. 39.46 days

d. 7 days

D= annual demand (cans/yr) WD = \# working days/yr d=DWD (cans/day) Q= order size (cans/order) L= lead time (days) T= cycle time (days) > time to use up order time between orders T=QdAHC=(1/2Q)(H)(KD/yr)[anupwardline] Avg. inventory level =1/2Q H= holding cost/can/yr cost to hold 1 can in storage for 1yr (KD/can/yr) H=(I)(C) or it is given I=a% of the unit item cost C= cost of the item AOC=(N)(S)(KD/yr)=QD(S) N=DQ=D/2 S= cost/order (KD/order) Q= optimal order size (EOQ) (cans/order) Q=H(2)(D)(S) TAC = total annual inv. cost (KD/yr) TAC=(1/2Q)(H)+(N)(S) ROP = reorder point (cans) ROP=(d)(L) ROP=TL (days) T=WDN (days)