contestada

A local coffee shop requires 802 ounces of coffee beans every week. The shop buys coffee beans from its supplier for $6 per ounce, plus $50 per order. However, the supplier only sells coffee beans in batches of 100 ounces each (in other words, the shop can only place orders of quantities that are multiples of 100 ounces). Suppose that the holding cost is $0.19 per ounce per week. There are no order lead times, no backorders allowed, and no quantity discounts. (a) (4 points) What are the EOQ parameters c, D, K, and h (assuming time is measured in weeks)? (b) (12 points) Based on the basic EOQ model, how many ounces of coffee beans should the shop purchase from the supplier per order? Note the restriction on feasible order quantities. (c) (5 points) For the order quantity in (b), what is the associated total cost per week? (d) (5 points) For the order quantity in (b), what is the associated cycle time? (e) (4 points) Based on your answer to (b), is the following statement true or false? "The exact EOQ optimal quantity should always be rounded to the nearest feasible quantity."