Annual demand
Tina’s Coffee Emporium wishes to determine the best order size for its best -selling Barista Espresso maker by Gastroback (Model TS111). Tina has estimated the annual demand for this model at 7600 units. Her cost to carry one unit is $100 per year per unit, and she has estimated that each order costs $20 to place.
Question: Show all work (calculations and things like that)
1. Using the EOQ model, how many should Tina order each time?
2. With regard to the above inventory models,
Questions: Support answer with additional references
Describe why you would use one model in preference to the other.
Explain why we need more than one inventory model to forecast ordering policy