Annual ordering cost if they order at their EOQ level

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Reference no: EM131150499

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. It costs $5 per case to order coffee. As coffee is a perishable product, the holding cost is fairly high at $40/case/year. Kushie's is open 300 days a year.

What is their annual ordering cost if they order at their EOQ level?

Reference no: EM131150499

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