PLEASE PRINT CLEARLY AND EXPLAIN ALL OF THE QUESTIONS. THANK YOU O Assignment 6 – Question…

PLEASE PRINT CLEARLY AND EXPLAIN ALL OF THE QUESTIONS. THANK
YOU

O Assignment 6 – Question 1 Target – Two popular coffee brands sold at Target stores are SB and EO – These coffees are shipped to Target’s Dekalb distribution center (DC) from their local warehouses – Cost of 12-oz coffees are $8 for SB coffee and $4 for EO coffee Suppose – Weekly demands at DeKalb DC are 200 packages for SB coffee and 400 packages for EO coffee Assume DeKalb DC operates 52 weeks per year – Fixed cost of ordering any coffee is $1000 per order (including transportation cost) – Additional ordering costs that depend on coffee brand are $400 for SB coffee and $200 for EO coffee – Inventory holding cost per package per year is 25% of the cost of coffee – Assume that there is no limit on truck capacity Questions – (1-1) What is the optimal lot size (economic order quantity) of each coffee if DeKalb DC replenishes each coffee brand independently? – (1-2) What is the cycle inventory of each coffee at Dekalb DC? – (1-3) What is the annual ordering cost of each coffee at DeKalb DC? – (1-4) What is the annual holding cost of each coffee at DeKalb DC? C ZICHT _____ COFFEE (Source) http://www.tar .com/searchTerm coffee bean categoryONICAlm achal partial call categories & Inksnavsbox coffee bean

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