Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

32. The Food Place Supermarket stocks Munchkin Cookies. Demand for Munchkins is constant at 5000 boxes per year (365 days). It costs the store $80

image text in transcribed

32. The Food Place Supermarket stocks Munchkin Cookies. Demand for Munchkins is constant at 5000 boxes per year (365 days). It costs the store $80 per order of Munchkins, and it costs $0.50 per box per year to keep the cookies in stock. Using the economic order quantity model, determine the following: (a) [2 pts] The optimal order quantity (b) [2 pts Annual ordering cost when the optimal order quantity is used (c) [2 pts] The annual inventory holding cost when the optimal order quantity is used. Round your answer to two decimal places. (d) [2 pts) The number of orders placed per year when the optimal order quantity is used. Round your answer to two decimal places. (e) [2 pts The time between two consecutive orders when the optimal order quantity is used. Round your answer to two decimal places. (f) [2 pts]The average inventory level when the optimal order quantity is used. Round your answer to one decimal place. AB (g) [2 pts] The reorder point when it takes 20 days for orders to be delivered. Assume 365 days a year. Round your answer to two decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions