Answer Happy

15
Newstar Foods is a company manufacturing cereal It has an annual demand for two flavors: Strawberry cereal and Blueberry cereal of 592600 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 Istrawberry 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 truit is 20% of the value of the fruit Answer the following questions based on the data above. Choose the closest number if needed. If you combine orders for each fruit into one monthly order (in other words, instead of using the EOQ policy, we will just send out one single monthly order combined for both fruits), it will still only cost $60 for the combined order What is the annual savings in total fixed order and inventory holding costs, compared to the separate EOQ policy for each fruk earlier? $250 cost increase 3554 swings $400 cost increase No savings $570 svines