Question: Please answer c - e ! Joe Birra needs to purchase malt for his micro - brew production. His supplier charges $ 2 5 per
Please answer ce
Joe Birra needs to purchase malt for his microbrew production. His supplier charges $ per delivery no matter how much is delivered and $ per gallon. Joe's annual holding cost is of the price per gallon. Joe uses gallons of malt per week.
a Suppose Joe orders gallons each time. What is his average inventory?
Round your answer to decimal places.
b Suppose Joe orders gallons each time. How many orders does he place with his supplier each year? ordersyr
c How many gallons should Joe order from his supplier with each order to minimize the sum of ordering and holding costs?
gallons
Round your answer to decimal places.
d Suppose Joe orders gallons each time he places an order with the supplier. What is the sum of ordering and holding costs per gallon?
Round your answer to decimal places.
e Suppose Joe orders the quantity from part c that minimizes the sum of the ordering and holding costs each time he places an order with the supplier. What is the annual cost of the EOQ expressed as a percentage of the annual purchase cost?
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