A restaurant owner is trying to decide whether to stay open at lunchtime. She has far fewer customers at lunch than at dinner and the revenue she brings in from lunch covers her expenses to buy food and pay the staff, but not much more. The restaurant owner should: multiple choice open for lunch, as the extra revenue from staying open covers the variable costs of staying open for lunch. close for lunch, as the revenue from staying open for lunch will only cover the variable cost of staying open and not the fixed cost. open for lunch, as the revenue from staying open for lunch covers the total costs of staying open for a full day. close for lunch, as the revenue from staying open for lunch will not yield any profit.

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If kroger had whole foods’ number of days’ sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? round interim calculations to one decimal place and your final answer to the nearest million.

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.