OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Chapter 14, Problem 1P

The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics:

Sales = 8 cases per week

Ordering cost = $10 per order

CaI1ying charge = 20 percent per year

Item cost = $80 per case

  1. a. How many cases should be ordered at a time?
  2. b. How often will tea be ordered?
  3. c. What is the annual cost of ordering and carrying tea?
  4. d. What factors might cause the firm to order a larger or smaller amount than the EOQ?
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Chapter 14 Solutions

OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)

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