Multiple Choice
Kushie's Coffee in Bangalore is a quaint establishment nestled near MG Road in the central business district. It serves coffee and fruit cake to a clientele that has been enjoying these products for over fifty years. The demand for coffee beans is 6600 cases per year (each case has 24 ten-pound bags) . It would be disastrous for them to run out of coffee, so they keep a safety stock of 30 cases. The cases cost $4800 and it costs $5 per case to order coffee. As coffee is a perishable product, the holding cost is fairly high at $40/case/year. The lead time to receive an order is seven days. Kushie's is open 300 days a year.
-What is the increase in their EOQ if all of the model parameters (except the number of days in a year) double?
A) 100%
B) 33%
C) 41%
D) 50%
Correct Answer:
Verified
Correct Answer:
Verified
Q50: The basic EOQ model plays no role
Q51: Kushie's Coffee in Bangalore is a quaint
Q52: In a(n) _ inventory system, an order
Q53: In the basic EOQ model, the amount
Q54: _ demand items are used internally to
Q56: Service level is positively correlated with the
Q57: If annual demand equals 1000 units, the
Q58: In the basic EOQ model, as the
Q59: The service level is the probability that
Q60: Inventory costs include<br>A) carrying costs.<br>B) ordering costs.<br>C)