Question: just need the answer to the question on second picture, first is for reference. thank you! a 10. A specialty coffeehouse sells Colombian coffee at
just need the answer to the question on second picture, first is for reference. thank you!
a 10. A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 pourids annually. The beans are purchased from a local supplier for $2.40 per pound. The cof- feehouse estimates that it costs S45 in paperwork and labor to place an order for the coffee, and holding costs are based on a 20 percent annual interest rate." 5. Reconsider N&0: Chapter 4, #10, now allowing shortages to occur. Assume that if a customer arrives and the store is out of Columbian coffee, the customer's order is backlogged and he receives a discount of $0.01 per pound per day until receiving his order (note that the holding cost presented in the book is applied on an annual basis). (30 points) a. What is the new optimal order quantity? b. What is the new time between placement of orders? c. What is the new total cost per unit time

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