The West Bean Roaster in Vancouver operates 200 days a year. She…

Question Answered step-by-step The West Bean Roaster in Vancouver operates 200 days a year. She… The West Bean Roaster in Vancouver operates 200 days a year. She sells several kinds of coffee, but her regular customers often prefer Kona coffee. West Bean uses an average of 75 pounds of Kona coffee beans per day (with a standard deviation of 15 pounds per day). Assume demand for the Kona follows a normal distribution. After placing an order (which costs them $16), the beans are delivered to them directly from Hawaii in 4 days. The annual storage cost is $3 per book.Include details of your calculations. An answer without details is worth zero points.1. Calculate the economic order quantity (EOQ) for West Bean.2. Calculate the annual warehousing cost + the annual order cost if they use economic order quantity (EOQ).Now suppose that West Bean management wants to maintain a service level of 99%.3. What should be the safety stock and reorder point?4. What is the cost of additional storage of safety stock? Accounting Business Cost Accounting ADM 3701 Share QuestionEmailCopy link Comments (0)