Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

PBK is a campus coffee store that uses EOQ to manage its inventory of whole bean coffee, the demand for which is known to be a constant 1, 440 pounds/year. PBK's fixed cost associated with placing and receiving an order from its supplier is $18/order . Its purchase cost is $1/pound, and its estimated (unit) annual holding cost is $3.60 /pound/year (per pound per year). If the actual (unit) annual holding cost is really $6.40/pound/year and PBK could estimate it accurately (i. e., PBK knew the actual cost when making decision on order quantity), what is the optimal order quantity/size in pounds to minimize Annual Inventory Cost?

a. 120
b. 87
c. 90
d. 110
e. 78

Sagot :

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.