question1:

A specialty coffee house sells Colombian coffee at a fairly steady rate of 28 pounds weekly. The beans are purchased from a local suppler for \$3 per pound. The coffee house estimates that it costs \$45 in paperwork and labor to place an order for the coffee, and total weekly holding cost are estimated at 20% of cost. What is the optimal order quantity for the coffee? (Pick the closest answer)

65

55

60

70

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Question 21 pts

Given the optimal order quantity that you found in Question 1, how much will the coffee shop spend each week on the ordering and inventory cost on average? (Pick the closest answer)

39

43

47

35

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Question 31 pts

For the problem described in Question 1, suppose that it takes three weeks for the coffee to be delivered. In deciding when to order, the coffee house could periodically inspect its inventory and place its order when the inventory is depleted to a certain level. That is that level? (pick the closest answer)

126

42

84

100

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Question 41 pts

For the problem described in Question 1, if the coffee house chooses an order quantity of 70 pounds, what would be the time between two orders?

2.5 weeks

3 weeks

2 weeks

1.5 weeks

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Question 51 pts

For the problem described in Question 1, what is the average inventory if the coffee house decides to place an order once in every 6 weeks?

70

56

98

84