Newstar Foods is a company manufacturing cereal. It has an annual demand for two flavors: Strawberry cereal and Blueberr
Posted: Fri May 20, 2022 8:00 am
Newstar Foods is a company manufacturing cereal. It has an
annual demand for two flavors: Strawberry cereal and Blueberry
cereal of 592,600 and 608,030 boxes respectively. Each box
contains 18 ounces of cereal, and exactly half of the weight of the
cereal comes from its fruit (strawberry or blueberry), and both
fruits are imported from Japan. Newstar Foods has computed its
ordering cost as US$60 per order. They pay their Japanese
supplier 12.5 US cents per pound (there are 16 ounces in a pound)
of strawberry and 10 cents per pound of blueberry. The annual
holding cost of either fruit is 20% of the value of the fruit.
The optimum order quantity for strawberry in pounds is:
Group of answer choices
40,000
38,800
42,200
28,700
36,000
annual demand for two flavors: Strawberry cereal and Blueberry
cereal of 592,600 and 608,030 boxes respectively. Each box
contains 18 ounces of cereal, and exactly half of the weight of the
cereal comes from its fruit (strawberry or blueberry), and both
fruits are imported from Japan. Newstar Foods has computed its
ordering cost as US$60 per order. They pay their Japanese
supplier 12.5 US cents per pound (there are 16 ounces in a pound)
of strawberry and 10 cents per pound of blueberry. The annual
holding cost of either fruit is 20% of the value of the fruit.
The optimum order quantity for strawberry in pounds is:
Group of answer choices
40,000
38,800
42,200
28,700
36,000