Logo
Home Study Material Contact Search
AI Chat FREE
  1. engineering
  2. mechanical engineering
  3. a gourmet coffee shop in downtown vancouver uses a

A gourmet coffee shop in downtown Vancouver uses a Periodic Inventory System and is open 200...

90.2K

Verified Solution

Question

Mechanical Engineering

A gourmet coffee shop in downtown Vancouver uses a PeriodicInventory System and is open 200 days a year. They sell on anaverage 75 pounds of KONA coffee beams a day. (Demand can beassumed to be distributed normally with a standard deviation of 15lbs. per day.) After (fix cost = $16 per order), beans are alwaysshipped from Hawaii within exactly 4 days. Per-pound annual holdingcosts for the beans are $3 and the cycle service level establishedby management is 98%. a. What is the economic order quantity (EOQ)for Kona coffee beans? b. Determine the Periodic Review Interval?c. What level of safety stock is required? d. What is the TargetInventory Level that is required to achieve these results? e. Whatare the total annual holding costs of stock for Kona coffee beans?f. What are the total annual ordering costs for Kona coffee beans?g. At the time the inventory was taken, the on hand was 300 lbswith the schedule receipts at 250 lbs with no back order. How muchshould the company order?

Answer & Explanation Solved by verified expert
4.3 Ratings (890 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

The Nelson Company has $1,687,500 in current assets and $675,000 in current liabilities. Its initial inventory...

Accounting
1.2K views

Eliot Rey, the owner of a publicly held technology company, asked Mary Messup, CPA, to conduct...

Physics
1.2K views

In terms of λ, f, μ, and T what times the square root of the tension...

Electrical Engineering
1.2K views

determine the electric field intensity required to levitate a body 2 kg in mass and charged...

Accounting
1.2K views

Question 29: Knight Co. owned 80% of the common stock of Stoop Co. Stoop had 50,000 shares...

Physics
1.2K views

The temperature inside a refrigerator is t C and the room temperature is t C...

Physics
1.2K views

When the 0 05 kg body is in the position shown the torsional spring at...

Basic Math
1.2K views

A cam is in the shape of a circular sector as shown in figure below...

Basic Math
1.2K views

Find the vertical asymptotes, if any, and the values of x corresponding to holes, if...

Basic Math
1.2K views

Determine if the following sets of quadratics are equivalent. Choose true or false.x-10x+14 = 0...

Accounting
1.2K views

Please help me complete the following journal entries Show all imagesShow...

Accounting
1.2K views

Creger Corporation, which makes landing gears, has provided the following data for a recent month:...