(b) A bakery sells Christmas gingerbread cookies featuring a healthy diet picture packed in each box. From...
Question:
(b) A bakery sells Christmas gingerbread cookies featuring a healthy diet picture packed in each box. From past experience, the demand for gingerbread cookies varies between 100 and 200 boxes. The cookie box costs $6.50 each, and the selling price is $15 each. The bakery sells any surplus cookie boxes for $1 at the end of promotion period and can sell all of them at this price.
How many cookie boxes should be ordered? What is the most suitable type of inventory model?
Analyse other inventory model(s) which the bakery can use to manage its inventories. Give reasons to support your answer. Hint: you can consider the bakery has to maintain different material inventories such as dough, toppings, and other supplies such as boxes, napkins, cups, and so on.
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam