Business, 18.12.2019 06:31 halfpint1168

Agourmet coffee shop in downtown san francisco is open 200 days a year and sells an average of 77 pounds of kona coffee beans a day. (demand can be assumed to be distributed normally with a standard deviation of 14 pounds per day). after ordering (fixed cost = $14 per order), beans are always delivered from hawaii in exactly 4 days. per-pound annual holding costs for the beans are $2.
a) what is the economic order quantity? (eoq) for kona coffee beans? b) what are the total annual holding costs of stock for kona coffee beans?

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