Economic order quantity and optimum order quantity

Assignment Help Basic Statistics

Reference no: EM1318051

The Speedy Grocery Store carries a particular brand of coffee that has the following characteristics:

Sales = 10 cases per week

Ordering Cost = $10 per order

Carrying Charge = 30 percent per year

Item Cost = $80 per case

a. How many cases should be ordered at a time?

b. How often will coffee be ordered?

c. What is the annual cost of ordering and carrying coffee?

d. What factors might cause the company to order a larger or smaller amount than the EOQ?

Reference no: EM1318051

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