World’s Greatest Coffee EOQ Problem A natural food store carries a brand of coffee called World’s Greatest Coffee. The following data should be used in your calculations. Demand/Sales = 10 cases of coffee per week (you will need to convert this to an annual amount) Ordering Cost = $12 per order Carrying Charge = 18% per year Unit Cost = $75 per case Answer the following questions and be sure to show your computations. You can use whatever symbol you need for square root, if typing in Word. 1. How many cases should be ordered at a time? (This number will be the EOQ) 2. How often should the coffee be ordered? 3. What is the annual cost or ordering the coffee? What is the annual cost of carrying the coffee? And what is the total cost (ordering and carrying costs added together)?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
World’s Greatest Coffee EOQ Problem
A natural food store carries a brand of coffee called World’s Greatest Coffee. The following data should
be used in your calculations.
Demand/Sales = 10 cases of coffee per week (you will need to convert this to an annual amount)
Ordering Cost = $12 per order
Carrying Charge = 18% per year
Unit Cost = $75 per case
Answer the following questions and be sure to show your computations. You can use whatever symbol
you need for square root, if typing in Word.
1. How many cases should be ordered at a time? (This number will be the EOQ)
2. How often should the coffee be ordered?
3. What is the annual cost or ordering the coffee? What is the annual cost of carrying the coffee?
And what is the total cost (ordering and carrying costs added together)?
4. Name three reasons or factors that might cause the firm to order a larger or smaller amount
than the EOQ.
Scoring – 20 possible points
Section Possible Points
Question 1 – EOQ computation 4
Question 2 – Frequency of ordering 4
Question 3 - Costs 8
Question 4 – Factors 4
Total 20
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