Important information about optimal order quantity

Assignment Help Business Management

Reference no: EM1366365

Important information about Optimal Order Quantity

A specialty coffeehouse sells Colombia coffee at a fairly steady rate of 280 pounds annually. The beans are purchased from local supplier for $2.40 per pound. The coffeehouse estimates that it cost $45 in paperwork and labor to place an order for the coffee, and holding costs are based on a 20% annual interest rate.

a. Determine the optimal order quantity for Colombian coffee

b. What is the time between placement of orders?

c. What is the average annual cost of holding and setup due to this item?

d. If replenishment lead time is three weeks, determine the reorder level based on the on-hand inventory.

e. What possible benefits/problems can you foresee with implementing JIT in the coffeehouse process?

To receive full credit for this assignment you must show assumptions, calculations and answers to all questions.

Reference no: EM1366365

Questions Cloud

Characterize japanese people behavior after the earthquake : How would you characterize the Japanese people behavior after the earthquake tragedy from a safety point of view. Compare with other cultures.

Are us copyrights protected overseas : Does China abide by international copyright laws? What can the US do if China violates a US copyright?

What is the concept of bailment : What is the concept of bailment and Why is a bailment for a fixed term or for the sole benefit of the bailee/bailor important?

Employees with disabilities and outdoor training : Employees with disabilities and outdoor training to develop teamwork - Outdoor teamwork building programs have become popular in the workplace.

Important information about optimal order quantity : Determine the optimal order quantity for Colombian coffee and what is the time between placement of orders?

Undue influence differentiated from duress and fraud : Undue influence differentiated from duress and fraud - How does undue influence differ from duress and fraud? Please provide some examples.

How do your two scores relate to your experience at work : McGregor's Theory X and Theory Y as it relates to work - How do your two scores relate to your experience at work?

How to gain power and influence at work : Explain how you gain power and influence in your own workplace. In order to do so, please make sure to apply theories, such as the French and Raven model.

Eliminate discrimination in the workplace : What else do you think could be done to eliminate discrimination in the workplace - What else do you think could be done to eliminate discrimination in the workplace?

User Account

All Pages