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The owner of a coffee shop needs to determine how many trays are needed. The annual tray sales are 6250 trays per year. Each
The owner of a coffee shop needs to determine how many trays are needed. The annual tray sales are 6250 trays per year. Each order costs $10 to set up. The shop is small so the cost to hold inventory is $50. The coffee shop is open 250 days per year and the trays can be delivered in 7 days. The shop has 4 full time and 7 part time employees. The shop owner has already figured out a few things - the economic order quantity for the trays is 50 trays. They have also figured out that they have to order the trays 125 times per year. We need to determine the following - What are the number of days between orders? What is the re-order point? This question will have 2 answers. You need to ensure you have rounded up to whole numbers. Days between orders = 7, Re-order point = 175 Days between orders = 2, Re-order point = 110 Days between orders = 2, Re-order point = 25 Days betweeners = 2, Re-order point = 175
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