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Andronico's in the financial center is open 300 days a year.-(Answered)

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Andronico?s in the financial center is open 300 days a year. They sell Organic Hummus; andsales are approximately normally distributed with an average of 100 tubs/day and a standarddeviation of 25 tubs/day. The wholesale cost is $1.80/tub, and they calculate their annual holdingcosts by using 20% of the wholesale cost. Orders cost $50 to place, regardless of number of tubsordered and take 4 days to arrivea) What is the economic order quantity (EOQ) for Organic Hummus? (2887)b) What are total annual cycle-stock holding costs for Organic Hummus? ($519.66)c) What are the total annual fixed order costs for Organic Hummus? ($519.57)d) Now Andronico?s has decided to save money and manufacture their own Hummus inhouse,with a production rate of 600 tubs/day, their setup cost would only be $7.50/run,and their annual holding cost would be $0.20/tub, but all other parameters remainunchanged. What is the Economic Production Quantity? (1643)

 

Paper#9255852 | Written in 27-Jul-2016

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