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fuat fuat
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6 years ago
What is their reorder point if they order at twice their EOQ?
 
  Kushie's Coffee in Bangalore is a quaint establishment nestled near MG Road in the central business district. It serves coffee and fruit cake to a clientele that has been enjoying these products for over fifty years. The demand for coffee beans is 6600 cases per year (each case has 24 ten-pound bags). It would be disastrous for them to run out of coffee, so they keep a safety stock of 30 cases. The cases cost 4800 and it costs 5 per case to order coffee. As coffee is a perishable product, the holding cost is fairly high at 40/case/year. The lead time to receive an order is seven days. Kushie's is open 300 days a year.
 
  A) 46 cases
  B) 92 cases
  C) 184 cases
  D) 368 cases
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nopronopro
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6 years ago
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4 years ago
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