Task 4Harvey Talbot Coffee Procurement
Details of the arrangement Harvey Talbot currentlyuse to procure their coffee are detailed in the scenario, along with relevant quantity and purchase price data.The Finance Director thinks thatthecompany could improve the ways in which they buy coffee and reduce costs too.You need to:
Analyse all the data and work out the Economic Order Quantity for coffee supplies
Calculate the annual cost of coffee using the EOQ purchase model
Work out the alternate costs of the bulk buying option
Make recommendations as to what strategy Harvey Talbot should adopt and add commentary on the flexible buying approach
Analyse all the data and work out the Economic Order Quantity for coffee supplies
