6.7 Gourmet Coffee (GC) is a specialty coffee shop that sells roasted coffee beans. It buys green beans, roasts them in

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6.7 Gourmet Coffee (GC) is a specialty coffee shop that sells
roasted coffee beans. It buys green beans, roasts them in its shop,
and then sells them to the consumer. GC estimates that it sells
about 150,000 pounds of coffee per year. Green beans cost about
$1.50 per pound. In addition, there is a shipping charge that GC
pays its supplier according to the following schedule:
Quantity Shipped -- Shipping Cost per Pound
Less than 10,000 pounds -- $0.17
Less than 15,000 pounds -- $0.15
More than 15,000 pounds -- $0.13
GC estimates its cost of inventory at 15% per year. The
administrative cost of placing an order (fax/phone/billing) and
receiving the goods and so on is about $50 per order. In addition,
to receive a shipment into its shop, GC rents a forklift truck for
$350.
1）GC is considering buying a forklift and building a ramp that
will allow it to eliminate the rental cost of a forklift. GC will
have to borrow money to finance this investment. If the life of the
equipment is approximately five years, how much money should GC be
willing to spend to buy a forklift and build a ramp? If the
investment were made, what should be the optimal order policy for
GC?