Show transcribed image text 9 Explain the fixed time period model. Problems Perk Coffee is a coffee packaging firm that purchases 12000 boxes of coffee annually from a coffee beans consolidator. If ordering cost is $10 per order and holding cost is $24 per box per year, what is the EOQ? 1. A pipe manufacturer requires a chemical for making plastic at the rate of 6000 gallons per year The cost of keeping the chemical storage includes both the cost of the special security precautions in the storage space as well as borrowing money on short-term loans to pay for the purchase; this works out to about $10 per gallon per year. Ordering costs, which include cost of special transportation, work out to $200 per order. The ch EOQ and Annual Total Cost? emical is bought at $45 per gallon. What is the Star is the manager of a specialty home appliance store where a best-selling item is a "smart" refrigerator. Annual demand for the item is 240 per year. Each fridge is sold for $3500 and is purchased from, the manufacturer for $2100. Holding cost is estimated to be 12% and ordering cost is $70 per order. What should be the order quantity? 3. oe the nrevious estimate