Kushie's Coffee in Bangalore Is a Quaint Establishment Nestled near MG

question 51

Short Answer

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.
-How many orders per year does Kushie's place if they order a cost minimizing quantity?

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Definitions:

Poverty Line

A financial threshold below which an individual or family is considered to be living in poverty, based on income.

Yearly Cash Income

The total amount of money received annually from various sources before taxes and other deductions.

Single-Parent Families

Family units consisting of one parent and his or her children, which may result from divorce, separation, death of a spouse, or unmarried parenthood.

Poverty Level

A defined threshold that determines the minimum income requirement for individuals and families to afford basic living expenses, used to identify and measure individuals' and households’ economic status.