MGMT 410

University Of California - Los Angeles School Of Nursing

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University of California, Los Angeles - MGMT 4102018 Flex FEMBA 410 Assignment 04 Key
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March 2021

2020/2021

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Question 1 A specialty coffee house sells Jamaican Blue Mountain Coffee at a fairly steady rate of 280 pounds annually. The beans are purchased from a local supplier for $2.40 per pound. The coffee house estimates that it costs $45 in paperwork and labor to place an order for the coffee and that holding costs are based on a 20% annual interest rate. D = 280 lb/yr C = $2.40 S= $45i = 0.2 Holding cost: H = iC = 0.2 x $2.40 = 0.48 $/lb (a) Determine the optimal order quantity for Jamaican...
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