Newstar Foods is a company manufacturing cereal. It has an annual demand for two flavors: Strawberry cereal and Blueberr
Posted: Fri May 20, 2022 8:01 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.
For the EOQ policy, the total annual stocking cost (the sum of
the holding and ordering costs) for blueberry is:
Group of answer choices
$1,150
$900
$1,065
$1,210
$906
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.
For the EOQ policy, the total annual stocking cost (the sum of
the holding and ordering costs) for blueberry is:
Group of answer choices
$1,150
$900
$1,065
$1,210
$906