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Groundz Coffee Shop uses 4 pounds of a specialty tea weekly; each pound costs $16. Carrying costs are $0.25 per pound. It costs the firm $8 to prepare an order. Assume the basic EOQ model with no shortages applies. Assume 52 weeks per year. a. How many pounds should Groundz order at a time? b. What is total annual cost (excluding item cost) of managing this item on a cost-minimizing basis? c. What is the annual ordering cost? Annual holding cost? Why are they equal? d. The current practice is to order for two weeks of demand (8pounds). Which cost will go up and which cost will go down and why?
MSA Computer Corporation manufacturers two models of minicomputers, the Alpha 4 and the Beta 5. The firm employs five technicians, working 160 hours each per month, on its assembly line. Management insists that full employment (i.e., all 160 hour of ..
Determine the appropriate length of a rail dock (in feet) given the following information. The average railcar loaded is 42 feet long and hold on average 40,000 pounds. The dock needs to support a demand of 5,013 cwt/day with 4 railcar changes per..
Each coffee table produced by Robert West Designers nets the firm a profit of $9. Each bookcase yields a $12 profit. West’s firm is small and its resources limited. During any given production period (of 1 week), 10 gallons of varnish and 12 lengths ..
How to calculate projected cost of goods sold while trying to reduce inventory levels.
Explain when demand exceeds supply you have to Find out a way to decrease demand or increase supply. Who needs to decrease demand.
Define the constitutional law theory that would help Joan and Don to defeat the law and its application to their business.
The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week the supermarket can buy..
What is the problem with power, according to Hoyk & Hersey: The more the power holder has at his or her disposal the means to punish and reward, the greater the temptation to use this power. The more the power holder uses his or her power, the more h..
A wood products firm uses available time at the end of each week to make goods for stock. Currently, two products on the list of times are produced for stock: a chopping board and a knife holder. Determine the optimal quantities of the decision varia..
The warehouse manager and his staff have been very impressed with your presentation thus far. They are very interested in applying more of your recommendations to their department. They have asked for you to provide them with a few examples of inv..
you are the manager of the production department and the project manager will come from your group. this will be a
How would you implement and control objectives/goals like selling at the super bowl, selling at other events around the world, if direct mailing work, developing relationships (for them to sell the product), and/or expanding their current facility in..
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