This is the first problem and includes the next four questions.

24. Nespresso makes coffee makers for sale on Amazon. They buy the machines from a Chinese manufacturer and realize almost steady demand all year long. The supplier has a two week lead time to get the coffee machines from its Chinese plant to the US Nespresso warehouse. Weekly demand is fairly stable at 1000 machines. The cost to place an order is $400 and the holding cost is estimated at 10% of cost, or $5 per unit per year. Current inflation rates in China are 8% and are 5% in the US.

Assume 52 weeks in a year for any calculations.

What is Nespresso's economic order quantity, rounding to the nearest whole number (no commas, fraction

A. none of these answers is correct

B. 1290

C. 400

D. 2884

25. What is Nespressos re-order point assuming no variability in demand or lead time? A.5768 B.none of these answers is correct C.2000 D.800

26. What is Nespressos total cost of managing inventory for an EOQ system? A. $2,000 B. none of these answers is correct C. $10, 922 D. $14,422

27. How many times will Nespresso order in one year?

A. around 74 times

B. around 18 times

C. 2.5 times

D. around 10 times