The primary objective of the basic economic order quantity model is     a. to calculate the reorder point so that resupply takes place at the proper time.     b. to minimize the sum of carrying cost and holding cost.     c. to maximize the customer service level.     d. to minimize the sum of the total ordering and holding costs.     e. to calculate the optimum safety stock.

Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the BB-1 set (BB-1 stands for Body Beautiful Number 1). The carrying cost for BB-1 is $5 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 7 times a year. The stockout cost for BB-1 is estimated to be $50 per set. Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1: Demand During Lead Time 40 50 60 70 80 90 The reorder point for BB-1 is 60 sets. What level of safety stock should be maintained for BB-1? The optimal quantity of safety stock which minimizes expected total cost is Probability 0.1 0.2 0.2 0.2 0.2 0.1 sets (enter your response as a whole number).

Henderson Furniture sells reproductions of 18th-century furniture. For a particular table, the assumptions of the inventory model with backorders are valid. Annual Demand: D = 200 tables per year Inventory holding cost (as a percent of the item cost): 1 = 25% per year Item cost: C = $800 per table Ordering cost: Co = $80 per order Backordering cost: Cb = $50 per table per year The store is open 250 days a year. What is the economic order quantity that will minimize the total cost? Results are expected to be rounded to the nearest whole number. ○ A. 28 B. 5 ○ C. 13 OD. 23 E. 14 QUESTION 4 What is the backorder quantity that will minimize the total cost? Results are expected to be rounded to the nearest whole number. ○ A. 14 B. 23 C. 13 OD. 28 ○ E. 5

A popular, local coffeeshop in one of the suburbs of New York City (NYC) estimates they use 3,000 pounds of coffee annually. They have to determine how many pounds to order each time in order to minimize their total annual cost. a. Determine the optimal size of the order assuming an EOQ model with a holding cost of $10 per pound annually and an ordering cost of $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.) ✓ Answer is complete and correct. Optimal Q 244.95 b. The owner has recently opened another store of the same size in New York City; however, the demand for coffee is increased to 3,800 pounds annually, and the holding cost is $60 per pound. Those numbers are much higher as is the cost of real estate in NYC. The owner places orders of the same size as the first store because they are the same size stores. How much will the total cost be in the new coffeeshop? (Do not round intermediate calculations. Round your answer to 2 decimal places.)