A coffee shop uses approximately 250 pounds of a particular


A coffee shop uses approximately 250 pounds of a particular type of coffee every week. The shop is open 52 weeks a year. The annual carrying charge for the coffee is 20%. If 1 pound of coffee costs the shop $12.00 and the cost associated with each order is $39, how many pounds of this coffee should be ordered each time an order is placed in the shop wants to minimize its total annualized inventory-related costs?

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Operation Management: A coffee shop uses approximately 250 pounds of a particular
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