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The Always Fresh Grocery Store carries a particular brand of coffee with following characteristics:
Sales = 3000 cases per yearOrdering cost = $300 per orderCarrying charge = 10% per yearItem cost = $50
Number of working days per year = 250 days
a(3). How many cases should be ordered at a time?
b(3). How often coffee will be ordered, i.e., what is the time between orders?
c(4). What is the annual cost of ordering and carrying tea?
d(5). What is the effect on EOQ and total cost if there is a 44% increase in carrying charges? (Note that carrying charge change from 10% per year to 20% per year would mean an increase of 100% in carrying charges.)
alternative r has a first cost of 100000 annual mampo costs of 50000 and a 20000 salvage value after 5 years.
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