Question
Real Great Foods (RGF) is a distributor of frozen food products. They source large quantities of fresh cheese from their local supplier at $10 per
Real Great Foods (RGF) is a distributor of frozen food products. They source large quantities of fresh cheese from their local supplier at $10 per kilogram. They incur an ordering cost of $5 per order. Fresh cheese, arriving at RGF distribution center, is cut uniformly into thin square slices of 3in3in. Each slice of cut cheese is wrapped in a plastic wrapper. Twenty such wrapped slices are put into a plastic pack that has the RGF logo on it. RGF sells each pack of sliced cheese to retail shops at $44 per pack of 1 kg. The setup cost for cutting, wrapping, and packaging operation is $7. The demand of packed cheese is DE per year. The inventory carrying rate is CR% per year. a. Find the optimal order quantities of the fresh cheese and the packed cheese. b. Find the yearly total relevant inventory cost of the supply chain. c. Find the optimal time between orders of the fresh cheese and of the packed cheese.
where DE 4280 and CR% 21.4%
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