Question: Single Source Monkoffee is further considering to source coffee beans only from Indonesia for both medium and dark roast coffees - Use same coffee beans

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Single Source Monkoffee is further considering to source coffee beans only from Indonesia for both medium and dark roast coffees - Use same coffee beans from Indonesia but separately roast for medium roast and dark roast Fixed order cost is $200 Inventory replenishment lead time is 4 weeks from Indonesia Facilities Operation Medium roast P1) Dark roast (P2) Weekly demands (independent) (D and al - Medium roast coffee (P1): 100 bags per week with standard deviation of 40 bags per week - Dark roast coffee (P2) : 25 bags per week with standard deviation of 10 bags per week Inventory holding (H) - $40 per bag per year (10% of product cost/price) Monkoffee uses continuous review policy - Lot size [Q] to replenish coffee beans from Indonesia is calculated using economic order quantity (EOQI Cycle service level (CSL) Inventory-replenishment lead time (Land) - 4 weeks . Fixed order cost (S) - $200 per order Question 3 Calculate following for raw coffee beans from Indonesia (at R1) for the single-source operation -(3-1) Lot size (0) . From supplier to roasting facility - (3-2) Safety inventory (ss) Safety inventory of raw coffee beans at roasting facility -(3-3) Annual ordering cost -(3-4) Annual holding cost

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