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

question 55

Multiple Choice

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 increase in their EOQ if all of the model parameters (except the number of days in a year) double?

• A) 100%
• B) 33%
• C) 41%
• D) 50%

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Definitions:

Gestalt Principle

The Gestalt principle suggests that humans naturally perceive objects as organized patterns and unified wholes rather than as separate components.

Gestalt Principle

A theory in psychology proposing that people naturally organize their perceptions according to certain patterns or wholes, rather than focusing on individual components.

Proximity

The physical or psychological closeness or nearness of objects, individuals, or concepts to one another.

Gestalt Psychology

A theory of mind stating that psychological phenomena should be viewed as organized, structured wholes rather than the sum of their parts.