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Business, 17.04.2021 15:30 mesposito

A coffee shop buys 3500 bags of their most popular coffee beans each month. The cost of ordering and receiving shipments is $12 per order. Accounting estimates annual carrying costs are $3.60. The supplier lead time is 14 operating days. The shop operates 240 days per year. Each order is received from the supplier in a single delivery. There are no quantity discounts.
What quantity should the shop order with each order?
How many times per year will the shop order?
How many operating days will elapse between two consecutive orders?
What is the reorder point if the company wishes to carry a safety stock of 10 bags?
What is the store's minimum total annual cost of placing orders & carrying inventory?

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