OM Cafe uses 208 pounds of special tea annually, each pound costs $16. Carrying costs are $52 per pound per year because

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OM Cafe uses 208 pounds of special tea annually, each pound costs $16. Carrying costs are $52 per pound per year because

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Om Cafe Uses 208 Pounds Of Special Tea Annually Each Pound Costs 16 Carrying Costs Are 52 Per Pound Per Year Because 1
Om Cafe Uses 208 Pounds Of Special Tea Annually Each Pound Costs 16 Carrying Costs Are 52 Per Pound Per Year Because 1 (34.67 KiB) Viewed 32 times
OM Cafe uses 208 pounds of special tea annually, each pound costs $16. Carrying costs are $52 per pound per year because space is very scarce. It costs the shop $8 to prepare a purchase order. Assume 52 weeks per year, closed on Mondays. Supplier lead time is 3 days. a) How many pounds of special tea should Cafe order at a time? b) What is the total annual cost (Excluding item cost)? c) What is the optimal number of orders per year? d) What is the optimal number of days between orders? e) What is the reorder point?
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