1. Exporting is one of the first ways many companies venture into foreign lands. What are some of the reasons a small company would decide to export goods to another country? What are some of the potential pitfalls that might occur and how could these challenges be overcome?
2. Honeywell Bakery buys teff flour for use in its gluten-free baked goods production at $4 per lb with an order cost of $15 and a lead time of 4 weeks. The flour is needed throughout the entire 52-week year, with an annual demand of 1,250 lbs. Honeywell's holding cost for teff flour is 90% of the item cost and they keep a safety stock of 55 lbs. (Note: 1 lb = 16 oz) a) Compute the optimal order quantity. (2 points) b) Compute the optimal order quantity if the price of teff flour changes to $10 per 60 oz. Is this order quantity different from the one in a? If so, explain the difference. (2 points) c) What is the reorder point for the teff flour? (3 points) Note: 1 lb = 16 oz.