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Problem C (10 points) Veritable Vegetables makes canned soups. Veritable orders 10,000 cases of frozen broccoli per year from Billy Goat Farms. You have the
Problem C (10 points) Veritable Vegetables makes canned soups. Veritable orders 10,000 cases of frozen broccoli per year from Billy Goat Farms. You have the following additional information: . The average cost (in the purchasing and accounting departments) to place and process a single order with Billy Goat Farms is S5. Farms is $20 The current purchase price of one case of broccoli is $40. . The average cost (in the factory) to receive and inspect a single order received from Billy Goat . The average annual cost to hold a case of broccoli in inventory is $8. Given the information above and using the techniques learned in class: How many cases should the purchasing manager order at the reorder point? Assuming Veritable Vegetables purchases in the quantity determined in a, what's the total annual cost of ordering and carrying cases of frozen broccoli in inventory? a. b. SHOW YOUR WORK
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