Andronicuss in the financial center is open 300 days a year, Operation Management

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Andronicuss in the financial center is open 300 days a year

Andronicus's in the financial center is open 300 days a year. They sell Organic Hummus; and sales are approximately normally distributed with an average of 100 tubs/day and a standard deviation of 25 tubs/day. The wholesale cost is $1.80/tub, and they calculate their annual holding costs by using 20% of the wholesale cost. Orders cost $50 to place, regardless of number of tubs ordered and take 4 days to arrive.

What is the economic order quantity (EOQ) for Organic Hummus?

What are total annual cycle-stock holding costs for Organic Hummus?

What are the total annual fixed order costs for Organic Hummus?

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Operation Management: Andronicuss in the financial center is open 300 days a year

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Operation Management: Andronicuss in the financial center is open 300 days a year

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