Question: QUESTION 8 (This problem description is for Questions 4-12) PBK is a campus coffee store that uses EOQ to manage its inventory of whole bean

QUESTION 8 (This problem description is for

QUESTION 8 (This problem description is for

QUESTION 8 (This problem description is for Questions 4-12) PBK is a campus coffee store that uses EOQ to manage its inventory of whole bean coffee, the demand for which is known to be a constant 1,440 pounds/year. PBK's fixed cost associated with placing and receiving an order from its supplier is $18/order. Its purchase cost is $1/pound, and its estimated (unit) annual holding cost is $3.60 /pound/year (per pound per year). Suppose that PBK's holding cost estimate is grossly inaccurate. In particular, suppose that PBK's actual (unit) annual holding cost is $6.40/pound/year. PBK did not know this actual value, so the firm used the estimated value of $3.60 per pound per year for the unit annual holding cost when calculated the best order quarity (and signed the contract with the local supplier). Calculate the actual Annual Inventory Cost of PBK in this scenario. $432 $621 O $576 O $537 $600 QUESTION 10 (This problem description is for Questions 4-12) PBK is a campus coffee store that uses EOQ to manage its inventory of whole bean coffee, the demand for which is known to be a constant 1,440 pounds/year. PBK's fixed cost associated with placing and receiving an order from its supplier is $18/order. Its purchase cost is $1/pound, and its estimated (unit) annual holding cost is $3.60 /pound/year (per pound per year). If the actual (unit) annual holding cost is really $6.40/pouid/year and PBK could estimate it accurately (i.e., PBK knew the actual cost when making decision on order quantity), what is the minimal Annual Inventory Cost? O $621 O $576 $432 $587 $600 $569

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