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

question 18

Essay

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 their cost for holding all types of inventory if they order optimally?

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Definitions:

Severe Braking

A situation where brakes are applied forcefully and suddenly, often in an emergency, to reduce vehicle speed quickly.

Brake Fade

Caused by a number of factors mostly relating to reduction in the coefficient of friction of brake friction materials. Thermal expansion of brake drums under prolonged braking tends to enlarge drum diameters, meaning that the actuation mechanisms such as slack adjusters no longer function at optimum mechanical efficiency, which makes brake fade more of a problem in drum brake systems.

Safety Pop-Off Valves

Valves designed to release pressure automatically to prevent damage or explosions in pressurized systems.

System Supply Tank

A reservoir or tank that holds fluid or fuel integral to the operation of a system, ensuring there is a sufficient supply for its functioning.