Partial Foods

You are responsible for managing the inventory for the trendy upscale specialty food store, Partial Foods. You are trying to set the inventory policy for one of your most popular cheeses, Mad Cow Cheddar, which comes in $1-$pound wheels. It is a stable$-$selling cheese with an average weekly demand of $14$ wheels$/$week$.$

Your fixed cost of placing an order from the farm that produces Mad Cow Cheddar is $$90/$order and the cheese itself costs you $$12\mathrm{.}50$ per wheel. Assume that there are $52$ weeks in a year and that the annual inventory holding charge is $20\%.$

Part $1$

$1.$ What should your economic order quantity be$,$ in wheels? Round to the nearest integer value.

Part $2$

$2.$ Under this ordering policy, how many weeks on average will the Mad Cow Cheddar be on your shelf? Round to the nearest integer value.

Part $3$

Your manager tells you that you cannot simply use all of the shelf space you want for free. There is an opportunity cost for shelf space at Partial Foods of $$10/$sqft$/$week and each wheel of Mad Cow Cheddar occupies $0\mathrm{.}15$ sqft of space.

$3.$ What should your economic order quantity, in wheels, be now? Round to the nearest integer value.

Part $4$

Your manager still thinks you order too much cheese and has limited your shelf space to a maximum of $3$ square feet. There is not back room, so all of your Mad Cow Cheese wheels need to fit within that space.

$4.$ What should your economic order quantity, in wheels, be now? Round to the nearest integer value.