Need new ans Newstar Foods is a company manufacturing cereal. It has an annual demand for two flavors:Strawberry cereal and Blueberry cereal of 592,600 and 608,030 boxes respectively. Each boxcontains 18 ounces of cereal, and exactly half of the weight of the cereal comes from its fruit(strawberry or blueberry), and both fruits are imported from Japan. Newstar Foods has computedits ordering cost as US$60 per order. They pay their Japanese supplier 12.5 US cents per pound(there are 16 ounces in a pound) of strawberry and 10 cents per pound of blueberry, The annualholding cost of elther fruit is 20% of the value of the fruit.Answer the following questions based on the data above. Choose the closest number if needed.For the EOQ policy, the total annual stocking cost (the sum of the holding and ordering costs) forstrawberry is$750$1.000$850$613O $900

The EOQ is calculated by dividing the total cost of ordering and carrying inventory for one period…

Answered: For the EOQ policy, the total annual…

For the EOQ policy, the total annual stocking cost (the sum of the holding and ordering costs) for strawberry is: $750 $1,000

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks to arrive. Charlie's Pizza uses an average of 180 pounds of pepperoni each week, with a standard deviation of 28 pounds. Charlie's prides itself on offering only the best-quality ingredients and a high level of service, so it wants to ensure a 98 percent probability of not stocking out on pepperoni. Assume that the sales representative just walked in the door and there are currently 450 pounds of pepperoni in the walk-in cooler. How many pounds of pepperoni would you order? Use Excel's NORM.S.INV() function to find the z value. Do not round intermediate calculations.
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