Question: Can you do the following question? A baker bakes two type of cakes chocolate and Vanilla, the Chocolate cake is produced daily and Vanilla once

Can you do the following question?

Can you do the following question? A baker bakes two type of

A baker bakes two type of cakes chocolate and Vanilla, the Chocolate cake is produced daily and Vanilla once in a week. The demand for the Chocolate is about 100 units per day and for the Vanilla is 75 cakes per week. One unit of Chocolate cake requires one unit of icing sugar and one unit of Vanilla cake requires one unit of its icing sugar. The icing sugar required for chocolate and the Vanilla is different. The sugar required for Chocolate is purchased at $0.50 per unit cake of chocolate and the shipping charges is about $10 which includes milk price of 55 dollars and $5 for the transportation vehicle per order. While the Sugar required for Vanilla is purchased at $1 per unit. The ordering cost for vanilla cake sugar is $14 and the storage cost for both the sugar is $1 each. The factory runs 5 days a week for 50 weeks in a year. 1. Calculate the E00 , Time interval in between the two orders, frequency of ordering for both the sugar. 2. The transportation vehicle's cost is in what percent to the total cost of the Chocolate cake sugar if the baker orders the sugar using EOQ model. 3. If the baker decides to use the same sugar for making both its product (Chocolate and Vanilla) and follows EOQ model, how much money will they save in the total cost of Vanilla sugar

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!