1. A grocery store carries a particular brand of coffee that has the following characteristics:Sales = 8 cases per weekOrdering cost = $10 per orderCarrying charge = 20 % per yearItem cost = $80 per casea. How many cases should be ordered at a time?b. How often will coffee be ordered?c. What is the annual cost of ordering and carrying coffee?d. What factors might cause the company to order a larger or smaller amount than the EOQ?
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