Business, 17.12.2019 07:31 sanam3035

Agourmet coffee shop in downtown san francisco is open 200 days a year and sells an average of 77 pounds of kona coffee beans a day. (demand can be assumed to be distributed normally with a standard deviation of 14 pounds per day). after ordering (fixed cost = $16 per order), beans are always delivered from hawaii in exactly 4 days. per-pound annual holding costs for the beans are $2. refer to the standard normal for z-values. a) what is the economic order quantity (eoq) for kona coffee beans? nothing pounds (round your response to the nearest whole number). b) assume that management has specified that no more than a 1% risk of stockout during lead time is acceptable. what should the reorder point (rop) be? nothing pounds (round your response to two decimal places). c) what is the safety stock needed to attain a 1% risk of stockout during lead time? nothing pounds (round your response to two decimal places). d) what is the annual holding cost of maintaining the level of safety stock needed to support a 1% risk? $ nothing (round your response to two decimal places). e) if management specified that a 2% risk of stockout during lead time would be acceptable, the safety stock holding costs will ▼ not change increase decrease

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