Question: Please does not skip steps. This has a finite production rate. Course: Production Plan and CONTROL A specialty coffeehouse sells Colombian coffee at a fairly

Please does not skip steps. This has a finite

Please does not skip steps. This has a finite production rate.

Course: Production Plan and CONTROL

A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 pounds annually. The beans are purchased from a local supplier for $2.40 per pound. The coffeehouse estimates that it costs $45 in paperwork and labor to place an order for the coffee, and holding costs are based on a 20 percent annual interest rate. If production rate is 1120 pounds annually, 1. Determine the optimal order quantity. 2. What is the time between placement of orders, uptime and downtime? 3. What is the average annual cost of holding and setup? 4. What is the maximum level of on-hand inventory

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