1.The Kenmore Square Starbucks offers 12 different style insulted coffee cups to its customers for purchase. The cups cost Starbucks $9.00 each.Last year, the sold 200 per month, evenly spaced throughout the year.This demand is expected to increase 10% in the future.The ordering costs for the cups is $50 per order.The holding cost rate is estimated to be 20% annually.

a)About how often will orders be placed (in weeks) using the optimal order quantity?

b)If the hat supplier offered a discount for ordering 1000 or more hats (at a cost of $8.00 per hat), how many hats should be ordered?

Answer rating: 100% (QA)

a To determine the optimal order quantity we can use the Economic Order Quantity EOQ formula EOQ sqr... View the full answer