You Manage a Candy Store in a High Traffic Shopping

question 82

Essay

You manage a candy store in a high traffic shopping mall where you have collected the following information.Answer the next four questions based on these data.
Weekly demand for small candy boxes = 90 boxes
Cost to place one purchase order with the box supplier = $19.80
Cost to hold one box for one year in inventory = $2.45
Lead time = 2 weeks
Weeks in a year = 52 weeks
a.What is the Economic Order Quantity (EOQ)?
b.Assuming the EOQ is ordered, what is the average inventory level (i.e., cycle inventory)?
c.Assuming the EOQ is ordered, what is the total annual order and inventory holding cost?
d.If a Fixed Period System (FPS) is adopted, what is the replenishment level (M) without safety stock?

---

Definitions:

Hazardous Waste Disposal Sites

Hazardous waste disposal sites are facilities designated for the safe treatment, storage, and disposal of hazardous wastes, ensuring environmental protection and public health safety.

Environmental Violations

Acts that go against regulations designed to protect the environment, such as illegal dumping of waste or emissions exceeding legal limits.

Environmental Protection Agency

The Environmental Protection Agency (EPA) is a U.S. federal agency responsible for protecting human health and the environment by enforcing environmental laws.

Adulterated

Refers to food or products that have been made impure or inferior by adding harmful or prohibited substances.