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Gelneren [198K]
3 years ago
9

Groundz Coffee Shop uses 4 pounds of a specialty tea weekly; each pound costs $16. Carrying costs are $1 per pound per week beca

use space is very scarce. It costs the firm $8 to prepare an order. Assume Groundz is open 52 weeks per year, and closed on Mondays.
a. How many pounds should Groundz order at a time?
b. What is the total annual cost of managing this item?
c. The lead time for orders to arrive is 1.5 (work) weeks. If the standard deviation of weekly demand is 1.2 pounds, and Groundz wishes to achieve at least a 98% customer satisfaction level, what is the reorder point?
d. Groundz has been contacted by a new supplier who is offering to sell the same tea for $12 per pound. In return, Groundz can place orders only once a month. Inventory and ordering costs would remain the same. Is it more cost-effective for Groundz to switch suppliers? Should Groundz switch?
Business
1 answer:
vovangra [49]3 years ago
5 0

Answer

e.Yes, it is cost effective to switch suppliers as total cost reduces from $3.744 to $3.060 and hence Groundz should switch. Please check the calculations.

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
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In this management style, executives pay casual, unplanned visits to staff in their work areas to understand their work environment, experience first hand their status reports instead of waiting for them to be delivered to their office. Management by walking around fosters a better work environment through better communication, a hands-on experience of the conditions of the workplace by managers as well as quick and effective problem solving.

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The treasurer of a major U.S. firm has $36 million to invest for three months. The interest rate in the United States is .24 per
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The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
8 0
3 years ago
Economists believe that scarcity is
krek1111 [17]

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HOPE THIS HELPED!!!!!!!!!!XDDDDD

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What does it mean to say that a currency appreciates? depreciates? becomes stronger? becomes weaker?
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When a currency appreciates, it means it increased in value relative to another currency; Depreciates means depreciation or depreciation relative to other currencies. It is often said that the dollar is strong when it is bought by equal or greater value in another currency. If the purchase amount is less than the equivalent, it is weak.

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Learn more about currency here:brainly.com/question/24373500

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