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Kushie's Coffee in Bangalore is a quaint establishment nestled near MG Road in the central business district. It serves coffee and fruit cake to a clientele that has been enjoying these products for over fifty years. The demand for coffee beans is 6600 cases per year (each case has 24 ten-pound bags). It would be disastrous for them to run out of coffee, so they keep a safety stock of 30 cases. The cases cost $4800 and it costs $5 per case to order coffee. As coffee is a perishable product, the holding cost is fairly high at $40/case/year. The lead time to receive an order is seven days. Kushie's is open 300 days a year.
-What is the optimal order quantity for Kushie's Coffee?
George Simmel
A German sociologist, philosopher, and critic known for his analyses of modern urban life and the forms of social interaction.
Human Created Forms
Man-made constructs or artifacts that embody cultural, philosophical, or social values and ideas.
Realist Position
A viewpoint in social science that asserts the existence of a reality independent of our thoughts or perceptions.
Emile Durkheim
A founding figure in sociology, known for his studies on social cohesion and the collective aspects of society.
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