Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 32

A coffee shop uses approximately 250 pounds of a particular type of coffee every week. The shop is open 52 weeks a year. The annual carrying charge for the coffee is 20%. If 1 pound of coffee costs the shop $12.00 and the cost associated with each order is $39, how many pounds of this coffee should be ordered each time an order is placed if the shop wants to minimize its total annualized inventory-related costs?