Question: I am stuck with this homework. I need a help please. Thank yo! A local organic store carries a brand of chocolate called The Real
I am stuck with this homework. I need a help please. Thank yo!
A local organic store carries a brand of chocolate called "The Real Chocolate". The following data should be used in your calculations. Demand/Sales = 10 cases of chocolate per week (you will need to convert this to an annual amount) Ordering Cost = $12 per order Carrying Charge = 18% per year Unit Cost = $75 per case Answer the following four questions and be sure to show your computations. 1. How many cases should be ordered at a time? (This number will be the EOQ) 2. How often should the coffee be ordered? 3. What is the annual cost or ordering the coffee? What is the annual cost of carrying the coffee? And what is the total cost (ordering and carrying costs added together)? 4. Name three reasons or factors that might cause the firm to order a larger or smaller amount than the EO
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