Business, 15.11.2019 05:31 azzyla2003

Agourmet coffee shop in downtown san francisco is open 200 days a year and sells an average of 75 pounds of konacoffee beans a day. (demand can be assumed to be distributed normally, with a standard deviation of 15 pounds per day.)after ordering (ﬁxed cost 5 $16 per order), beans are always shipped from hawaii within exactly 4 days. per-pound annualholding costs for the beans are $3.a) what is the economic order quantity (eoq) for kona coffee beans? b) what are the total annual holding costs of stock for kona coffee beans? c) what are the total annual ordering costs for kona coffee beans? d) assume that management has specified that no more than a 1% risk during stockout is acceptable. what should thereorder point (rop) be? e) what is the safety stock needed to attain a 1% risk of stockout during lead time? f) what is the annual holding cost of maintaining the level of safety stock needed to support a 1% risk? 9) if management specified that a 2% risk of stockout during lead time would be acceptable, would the safety stockholding costs decrease or increase?

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