Powered by Koffe (PBK) is a new coffee store on campus. PBK uses 60 bags of whole bean coffee every month, and you may a

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answerhappygod
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Powered by Koffe (PBK) is a new coffee store on campus. PBK uses 60 bags of whole bean coffee every month, and you may a

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Powered by Koffe (PBK) is a new coffee store on campus. PBKuses 60 bags of whole bean coffee every month, and you may assumethat the demand is perfectly steady throughout the year. PBK hassigned a contract to buy its coffee from a local supplier for aprice of $30 per bag and a $100 fixed cost for every deliveryindependant of order size, PBK incurs an inventory holding cost of20% per year.
A) If PBK orders 130 bags at a time, how many orders will itplace per year
B)What is PBK's annual inventory holding cost per bag?
C) If PBK orders 180 bags at a time, what is the inventoryholding cost per year
D)What optimal order quantity minimizes PBK's ordering andholding costs per year?
E) If PBK chooses an order quantity to minimize ordering andholding costs, what is its minimal cost, for that optimalquantity?
F)If PBK does choose that optimal order quantity, what will itsordering and holding costs per year be, expressed as a percentageof the annual purchase cost for the coffee beans? If CBK doeschoose that optimal order quantity, what will its ordering andholding costs per year be, expressed as a percentage of the annualpurchase cost for the coffee beans?
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