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5:01 Student EOQ The Sticky Finger is a chocolate shop in Rutland. The annual demand for Sticky Finger's special truffle is 3000 pieces. The
5:01 Student EOQ The Sticky Finger is a chocolate shop in Rutland. The annual demand for Sticky Finger's special truffle is 3000 pieces. The cost to order (set up cost) is $15. The cost to hold inventory is 20% per year. The cost of material is $125 and the lead time for delivery of material is 3 days. Sticky Fingers works 8 hours per day, 365 days per year. a. What is per unit cost of inventory (Co)? b. How many times per year will Sticky Fingers have to set-up to achieve their annual demand? c. How long does each production run last (Cycle time)? d. What is the maximum amount of inventory (Qmax)? e. What is the ReOrder Point (ROP)?
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