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A gourmet coffee shop in downtown San Francisco is open 2 0 0 days a year and sells an average of 7 6 pounds of
A gourmet coffee shop in downtown San Francisco is open days a year and sells an average of pounds of Kona coffee beans a day. Demand can be assumed to be distributed normally with a standard deviation of pounds per day After ordering fixed cost $ per order beans are always delivered from Hawaii in exactly days. Perpound annual holding costs for the beans are $ Assume that management has specified that no more than a risk of stockout during lead time is acceptable. What is the annual holding cost of maintaining the level of safety stock needed to support a risk
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