Question: Powered by Koffee ( EOQ + ROP ) Powered by Koffee ( PBK ) is a new campus coffee store. PBK uses 5 0 bags
Powered by Koffee EOQ ROP Powered by Koffee PBK is a new campus coffee store. PBK uses bags of whole bean coffee every month, and you may assume that demand is perfectly steady throughout the year. PBK has signed a yearlong contract to purchase its coffee from a local supplier, Phish Roasters, for a price of $ per bag and an $ fixed cost for every delivery independent of the order size. The holding cost due to storage is $ per bag per month. There is an additional holding cost due to the cost of capital, which PBK managers estimated at percent per month. what is the optimal order size
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