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New York Coffee Company sells cups of coffee to customers. It receives its bags of coffee beans from a local roasting company. New York Coffee
New York Coffee Company sells cups of coffee to customers. It receives its bags of coffee beans from a local roasting company. New York Coffee Company has an annual demand of 4000 bags of coffee and operates for 300 days every year. Each bag of coffee costs $9.75 and the company's carrying cost percent is 17.5% per bag per year. Every time New York Coffee Company orders from its local roasting company, the company incurs an ordering cost of $65 per order. a) What is the daily demand for New York Coffee Company? b) What is the optimal order quantity, EOQ, that New York Coffee Company should place? c) What is the annual holding cost? d) What is the annual ordering cost? e) How many days pass between two consecutive orders? f) What is the company's grand total cost
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