Blue Bottle Coffee operates a network of cafés that rely on…
Blue Bottle Coffee operates a network of cafés that rely on weekly deliveries of freshly roasted coffee beans. To maintain flavor quality, Blue Bottle aims to keep beans no more than 14 business days in inventory before use. Blue Bottle is considering using the EOQ model to manage shipments from its central roasting facility. Before adopting it, management wants to know how many business days would pass between orders under an EOQ policy, so they can compare that interval to their freshness target. They have gathered the following information for their popular Blues Brew blend: Item Value Annual demand 12,400 pounds Annual holding cost per pound $4.10 Ordering cost per shipment $65 Lead time 2 business days Working days per year 305 If Blue Bottle Coffee orders according to the EOQ, how many business days will normally elapse between orders?