Question: Problem 1 ( 2 0 points ) Gollee those cats sure go through a lot of food, Geoff exclaimed as he saw the shopping list
Problem points
"Gollee those cats sure go through a lot of food," Geoff exclaimed as he saw the shopping list pad that had been preprinted with the words "cat food" a the top. He pondered a different approach to shopping for the furry little darlings, reviewed his shopping records, and discovered the following. The price of cat food has held steady at cents per can. Despite feigning indifference, each of the seven cats nibbles their way through an average of one can per day, three hundred sixty five days a year. The price of gasoline has held constant at $ per gallon and his pickup uses a gallon each way to the cat food store. The cost to hold a can of cat food is of the unit price.
Determine the economic order quantity for cat food
Determine the average number of orders per year if Geoff adopts an EOQ policy.
Determine the annual setup cost if Geoff follows an EOQ policy to obtain cat food.
Determine the combined cost of goods and inventory policy if Geoff decides to follow the economic order quantity model
Determine the numbers of days elapsed inbetween trips to the cat food store if Geoff wisely elects to follow an EOQ policy for obtaining cat food.
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