Koshy's Coffee in Bangalore is a quaint establishment nestled near MG Road in the central business ...

Koshy'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. Koshy's is open 300 days a year.


What is the reorder point for Koshy's if they reorder a quantity twice as high as their EOQ?