The Breeze grocery store sells canned organic peaches. Breeze purchases these peaches from Orgo, an organic...

 

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The Breeze grocery store sells canned organic peaches. Breeze purchases these peaches from Orgo, an organic fruit distributor, at a wholesale price of $10 per case. This wholesale price includes delivery to Breeze's location. Breeze estimates an weekly holding cost of $0.04 per case per week. Analysis of purchasing transactions suggests that Breeze incurs an ordering cost of $100 per order placed with Orgo. Breeze faces a retail demand of 100 cases per week. Assume 50 weeks per year. a. Provide the optimal order quantity that Breeze should order to minimize ordering and holding costs. Provide the associated ordering and holding cost per week and the product cost per week. b. Orgo has decided to offer a trade promotion of 4% off the wholesale price, once every 26 weeks. Given this trade promotion, Breeze wants to decide the quantity to order to minimize product costs, and ordering and holding costs. Provide the optimal order quantity, the associated product, ordering, and holding cost per week under this system. c. If Orgo decides to offer this promotion every 13 weeks. How will your answers in part b changes? The Breeze grocery store sells canned organic peaches. Breeze purchases these peaches from Orgo, an organic fruit distributor, at a wholesale price of $10 per case. This wholesale price includes delivery to Breeze's location. Breeze estimates an weekly holding cost of $0.04 per case per week. Analysis of purchasing transactions suggests that Breeze incurs an ordering cost of $100 per order placed with Orgo. Breeze faces a retail demand of 100 cases per week. Assume 50 weeks per year. a. Provide the optimal order quantity that Breeze should order to minimize ordering and holding costs. Provide the associated ordering and holding cost per week and the product cost per week. b. Orgo has decided to offer a trade promotion of 4% off the wholesale price, once every 26 weeks. Given this trade promotion, Breeze wants to decide the quantity to order to minimize product costs, and ordering and holding costs. Provide the optimal order quantity, the associated product, ordering, and holding cost per week under this system. c. If Orgo decides to offer this promotion every 13 weeks. How will your answers in part b changes? The Breeze grocery store sells canned organic peaches. Breeze purchases these peaches from Orgo, an organic fruit distributor, at a wholesale price of $10 per case. This wholesale price includes delivery to Breeze's location. Breeze estimates an weekly holding cost of $0.04 per case per week. Analysis of purchasing transactions suggests that Breeze incurs an ordering cost of $100 per order placed with Orgo. Breeze faces a retail demand of 100 cases per week. Assume 50 weeks per year. a. Provide the optimal order quantity that Breeze should order to minimize ordering and holding costs. Provide the associated ordering and holding cost per week and the product cost per week. b. Orgo has decided to offer a trade promotion of 4% off the wholesale price, once every 26 weeks. Given this trade promotion, Breeze wants to decide the quantity to order to minimize product costs, and ordering and holding costs. Provide the optimal order quantity, the associated product, ordering, and holding cost per week under this system. c. If Orgo decides to offer this promotion every 13 weeks. How will your answers in part b changes? The Breeze grocery store sells canned organic peaches. Breeze purchases these peaches from Orgo, an organic fruit distributor, at a wholesale price of $10 per case. This wholesale price includes delivery to Breeze's location. Breeze estimates an weekly holding cost of $0.04 per case per week. Analysis of purchasing transactions suggests that Breeze incurs an ordering cost of $100 per order placed with Orgo. Breeze faces a retail demand of 100 cases per week. Assume 50 weeks per year. a. Provide the optimal order quantity that Breeze should order to minimize ordering and holding costs. Provide the associated ordering and holding cost per week and the product cost per week. b. Orgo has decided to offer a trade promotion of 4% off the wholesale price, once every 26 weeks. Given this trade promotion, Breeze wants to decide the quantity to order to minimize product costs, and ordering and holding costs. Provide the optimal order quantity, the associated product, ordering, and holding cost per week under this system. c. If Orgo decides to offer this promotion every 13 weeks. How will your answers in part b changes?

Answer rating: 100% (QA)

a Economic order quantity EOQ square root 2DS H where D is annual demand S is setup cost H is ... View the full answer