Use the information below for questions 4 through 15.

You run Bob's Burger Barn. Demand for hamburger meat is 4000 pounds per month. You buy burger meat from Sysco Systems at a cost of $4/pound, and your order cost is $75. Inventory carry cost is 20%.

What is annual demand if you are open 12 months a year.

Group of answer choices

60000 pounds

4000 pounds

48000 pounds

36000 pounds

Question 5

What is the EOQ?

Group of answer choices

1000

3000

4000

2000

Question 6

How many orders will you place throughout the year?

Group of answer choices

14

15

16

18

Question 7

What is your average inventory?

Group of answer choices

2000

2500

1500

1000

Question 8

What is the holding cost per pound of hamburger?

Group of answer choices

$0.6 per pound

$1 per pound

$1.2 per pound

$0.8 per pound

Question 9

What is the Annual Holding Cost.

Group of answer choices

$1200

$1600

$19,200

$1400

Question 10

What is the Annual Order Cost?

Group of answer choices

$1200

$1600

$2000

$1400

Question 11

What is the Annual Purchase Cost?

Group of answer choices

$192,000

$196,000

$194,000

$190,000

Question 12

What is the Total Annual Inventory Cost?

Group of answer choices

$198,100

$194,400

$193,600

$196,200

Question 13

If Bob's Burger Barn is open 20 days per month, what is Daily Demand for hamburger meat?

Group of answer choices

300

100

200

400

Question 14

Based on your answer for question 13, if your lead time to get hamburger from Sysco is 3 days, what is the Re-Order Point?

Group of answer choices

800

600

400

200

Question 15

Sysco Systems, your supplier, has a new minimum order quantity policy, and you can no longer buy at the EOQ you calculated in question 5. Instead you have to buy at an order quantity of 10,000 lbs. What is the new TAIC, given this new order quantity?

Group of answer choices

$196,360

189,250

$198,375

$194,550