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Item $1$

Time Remaining $35$ minutes $3$ seconds

$00$:$35$:$03$

Additional Problem $12-2($Algo$)$

A popular, local coffeeshop in one of the suburbs of New York City $($NYC$)$ estimates they use$3,400$ pounds of coffee annually. They have to determine how many pounds to order each time in order to minimize their total annual cost.

Determine the optimal size of the order assuming an EOQ model with a holding cost of $$10$ per pound annually and an ordering cost of $$100.$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

The owner has recently opened another store of the same size in New York City; however, the demand for coffee is increased to $4,100$ pounds annually, and the holding cost is $$60$ per pound. Those numbers are much higher as is the cost of real estate in NYC$.$ The owner places orders of the same size as the first store because they are the same size stores. How much will the total cost be in the new coffeeshop?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Can the owner save more by changing the order size in the second store?

multiple choice

Yes Correct

No

What is the optimal order size for the NYC shop? How much is the$$new quantity going to save the owner?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.