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3c 201 Problem 3:(20 points) The Second Cup coffee shop consumes 70 pounds of coffee per month. The shipping cost is $50 per shipment, and

3c 201 Problem 3:(20 points)

The Second Cup coffee shop consumes 70 pounds of coffee per month. The shipping cost is $50 per shipment, and the holding cost is 20%. The coffee bean provider offers The Second Cup all-unit discount according to the following structure

Calculate the optimal batch size for The Second Cup coffee shop.

a) c) Calculate the monthly Cycle Inventory at The Second Cup

d) Calculate the average flow time for the coffee at The Second Cup

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