I need a detailed assistance to solve this problem in: Operations Analysis.#4) A greengrocer has exactly 1,000 square feet available to display and sells 3 kinds of vegetables.  The space consumed by each kind of vegetable is proportional to its cost, and tomatoes consume 0.5 square feet per pound.  There is a $100 setup cost for replenishing any of the vegetables, and the interest rate is 25% per annum.  The 3 vegetables for sale have the following data:Tomatoes: annual demand is 850 pounds and the cost per pound is $0.29.Lettuce: annual demand is 1280 pounds and the cost per pound is $0.45.Zucchini: annual demand is 630 pounds and the cost per pound is $0.25.a) - What is the optimal quantity for purchasing each vegetable (include all formulas)?

Question
Asked Feb 26, 2019
33 views

I need a detailed assistance to solve this problem in: Operations Analysis.

#4) A greengrocer has exactly 1,000 square feet available to display and sells 3 kinds of vegetables.  The space consumed by each kind of vegetable is proportional to its cost, and tomatoes consume 0.5 square feet per pound.  There is a $100 setup cost for replenishing any of the vegetables, and the interest rate is 25% per annum.  The 3 vegetables for sale have the following data:

  • Tomatoes: annual demand is 850 pounds and the cost per pound is $0.29.
  • Lettuce: annual demand is 1280 pounds and the cost per pound is $0.45.
  • Zucchini: annual demand is 630 pounds and the cost per pound is $0.25.
  • a) - What is the optimal quantity for purchasing each vegetable (include all formulas)?
check_circle

Expert Answer

Step 1

Compute the space consumed by Lettuce:

 

fullscreen
Step 2

Compute the space consumed by Zucchini:

 

fullscreen
Step 3

Compute the economic order quantity for to...

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Operations Management

Related Operations Management Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: What are the four ways of increasing self-efficacy as proposed by Albert Bandura? How can you apply ...

A: Self-efficacy:It is the ability of an individual in one's belief to succeed in the accomplishment of...

question_answer

Q: which forms of marketing research would be best in gathering consumer information relating to the pr...

A: Market research is very important to gather the information related to the customer’s choice their f...

question_answer

Q: A vending machine dispenses hot chocolate or coffee. Service time is 30 seconds per cup and is const...

A: The service rate µ = 1 / 0.5 cups per min i.e. 2 or 120 cups per hour.The arrival rate λ = 76 cups p...

question_answer

Q: Choose two different student organizations in your school.List the group characteristics of each of ...

A: Let the two groups be student activities center and the canteen food committee:Student activities ce...

question_answer

Q: A new training program has been put into effect and here are teh results: X = Numbers of hours of tr...

A: The correlation coefficient between X and Y is: -0.96943. Hence there is almost a direct relationshi...

question_answer

Q: What is ABC inventory system?

A: Define ABC inventory system:ABC inventory system is the system that comes under material management ...

question_answer

Q: Discuss the use of text messaging in business settings. What are the advantages of this method of co...

A: Text messaging is useful for conveying structured and unstructured text in business settings. Short ...

question_answer

Q: What is the major Organizational Behavior challenge facing businesses today?

A: The major organizational behavior challenge facing businesses today are as follow:Managerial Challen...

question_answer

Q: The Bargain Hut has 2400 cubic feet of storage space for refrigerators. Large refrigerators come in ...

A: First we develop the model for the problem which is an LP (Linear Programming) problem. Assuming L l...