Hello,

Please help me to solve this question.

Part A and b

Part c

The Breeze grocery store sells canned organic peaches. Breeze purchases these peaches from Orgo, an organic fruit distributor, at a wholesale price of $10 per case. This wholesale price includes delivery to Breezes location. Breeze estimates an weekly holding cost of $0.04 per case per week. Analysis of purchasing transactions suggests that Breeze incurs an ordering cost of $100 per order placed with Orgo. Breeze faces a retail demand of 100 cases per week. Assume 50 weeks per year.

1. Provide the optimal order quantity that Breeze should order to minimize ordering and holding costs. Provide the associated ordering and holding cost per week and the product cost per week.
2. Orgo has decided to offer a trade promotion of 4% off the wholesale price, once every 26 weeks. Given this trade promotion, Breeze wants to decide the quantity to order to minimize product costs, and ordering and holding costs. Provide the optimal order quantity, the associated product, ordering, and holding cost per week under this system.
3. If Orgo decides to offer this promotion every 13 weeks. How will your answers in part b changes?

A B D E F G H K L M N O P R s T U 1 2 Parameters No Promotion Case 3 Order Quantity (0) 707.1067812 sqrt(2Ds/h) ordering cost (s) wholesale price (c) holding cost (hr) demand rate (D) $ $ $ 100.00 per order 10.00 per case 0.04 per case per week 100 per week Holding Cost per week Odering Cost per week Product Cost per week Total cost per week $ 14.14 ho/2 $ 14.14 SD/Q $ 1,000.00 CD $ 1,028.28 1 5 6 7 8 9 10 11 12 13 14 15 discount factor (6) promotion cycle (T) 0.96 26 week Total cost over T weeks Q I With Promotion Case min(Q/6+ (1-6)Dc/(hr), DT) Order Quantity with Promotion (Qd) 16 17 18 19 20 21 22 Number of weeks covered by Promotion Order Holding Cost Over This Period Odering Cost Over This Period Product Cost Over This Period Total Cost Over This Period Qd/D (ShrQd/2)*(Qd/D) s ScQd Qd 23 24 Q Number of Periods covered by Regular Order Total Cost Over This Period 25 26 27 28 29 30 31 Total Cost Over T weeks B D E F G H L M N o p P Q R S T U 1 Parameters No Promotion Case Order Quantity (0) sqrt(2Ds/h) ordering cost (s) wholesale price (c) holding cost (hr) demand rate (D) $ $ $ 100.00 per order 10.00 per case 0.04 per case per week 100 Iper week 2 3 4 5 6 7 8 9 10 11 12 13 14 Holding Cost per week Odering Cost per week Product Cost per week Total cost per week ho/2 SD/Q CD discount factor (8) promotion cycle (T) week Total cost over Tweek 0 INNN 15 With Promotion Case 16 17 18 19 20 21 Order Quantity with Promotion (Qd) min(Q/8 +(1-6)Dc/Shr), DT] Qd/D (ShrQd/2)*(Qd/D) Number of Days covered by Promotion Order Holding Cost Over This Period Odering Cost Over This Period Product Cost Over This Period Total Cost Over This Period S Qd ScQd 22 23 24 25 26 27 28 29 30 31 Number of Periods covered by Regular Order Total Cost Over This Period Total Cost Over T Weeks