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10. A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 pounds annually. The beans are purchased from a local supplier for
10. A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 pounds annually. The beans are purchased from a local supplier for $2.40 per pound. The coffeehouse estimates that it costs $45 in paperwork and labor to place an order for the coffee, and holding costs are based on a 20 percent annual interest rate. a. Determine the optimal order quantity for Colombian coffee. b. What is the time between placement of orders? c. What is the average annual cost of holding and setup due to this item? d. If replenishment lead time is three weeks, determine the reorder level based on the on-hand inventory. Question 4.10: (25 points) Programming Problem with Python Write a function called basicEOQ that has 4 mandatory parameters and one optional parameter in the following order: fixed order cost, annual demand,,per unit item cost, interest rate, and lead time (as a fraction of a year, rounded to 2 decimal places) with a default value of 0. Your function should compute the optimal EOQ order quantity, the time between orders measured in years, the average annual cost of holding and setup, and reorder level. - Order quantity and reorder level should be rounded to integer values - for grading purposes, order quantities should be rounded up if the fractional component is strictly greater than 0.5 and down otherwise - the reorder level should always be rounded up - Time between orders (using unit "year"), holding and setup costs should be rounded to 2 decimal places - The computed values should be stored in a list (in the order listed above) and the list should be returned to the user. - Be sure you use the rounded order quantity in your other calculations. - Your python file should be named LastName_FirstName_Ch4.py using your own name, and your name must be in a comment at the top of the file - Be sure to comment out any tests cases that you write for yourself before submitting
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