The rising popularity of bubble and squeak as a breakfast item on the menu has resulted...

70.2K

Verified Solution

Question

Operations Management

The rising popularity of bubble and squeak as a breakfast itemon the menu has resulted in a
steady demand for peas. Over the course of the past week, 228customers have ordered the hearty
breakfast containing a cup of English peas. It costs $0.04 to holda cup of peas in inventory for a
year and $3 to place an order. It takes two weeks to ship acontainer from England loaded with
peas. Assume that each year has 52 weeks.
What is the optimal order quantity?
A) 2670 cups
B) 17.8 cups
C) 1334 cups
D) 8.9 cups
What will be the average inventory if they order 1330 units eachtime?
A) 2660 cups
B) 1330 cups
C) 665 cups
D)333 cups
How many orders per year does the diner have to place if theyorder 1317 cups each time?
A) 18
B) 9
C) 5
D) 14
What is the cost of the inventory policy (holding cost +ordering cost) if the diner orders 8
times per year?
A) $53.64
B) $106.80
C) $26.70
D) $80.10
What is the average flow time if the diner orders 1334?
A) 8.76 weeks
B) 5.84 weeks
C) 2.93 weeks
D) 11.68 weeks

Answer & Explanation Solved by verified expert

3.9 Ratings (777 Votes)

Weekly demand 228 cups Number of weeks per year 52 Annual demand D weekly demand number of weeks per year 228 52 11856 cups Ordering cost S 3 Holding 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