A coffee roaster in Richardson has opened a retail store adjacent to the production plant. The plant manager wishes to optimize the inventory costs of the company’s best-selling coffee. The annual demand for the coffee is 36,000 bags and the plant works 240 days per yr. The plant can roast the coffee at a rate of 200 bags per day. The cost to prepare the equipment to start a production run is $200 and the annual inventory carrying cost is $3.6 per year. 1. What should be the optimum quantity of coffee to produce? 2. What is the maximum inventory achieved during a production run? 3. How many production runs are needed to meet the annual demand? 4. What is the average inventory of coffee? 5. What is the total annual cost of producing and storing the company’s best-selling coffee?

In terms of precent, beer has more alcohol than whiskey true or false

How many months does the federal budget usually take to prepare

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?