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A special coffeehouse sells Colombian coffee at a fairly steady reat of 30 pounds per month. The beans are purchased from a local supplier for $3.20 per pound. The coffeehouse estimates that it costs about $60 in paperwork and labour to place an order for the coffee, and the holding costs are based on a 15% annual interest rate.
a) What is the optimal opder quantity for Colombian coffee?
b) If the replenishment lead time in 10.6 months, what is the re-order level based on the on-hand inventory?
c) What is the average annual cost of holding and setup cost due to the optimal order?
What percent of North American gross domestic product is accounted for by logistics? Almost 11 percent Almost 22 percent Almost 33 percent Almost 44 percent Flingers
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