Assignment task: Culinary Harmony Culinary Harmony is a fine-dining restaurant known for its culinary excellence and high-quality ingredients. The management aims to optimize inventory efficiency and profitability for two crucial items: Olive Oil and the Signature Cocktail: Section 1: Olive Oil Inventory Culinary Harmony consumes an average of 500 bottles of olive oil per month. Each bottle is purchased at a cost of $3. The annual holding costs per bottle are 25% of the purchase price, and there is an ordering cost of $25 per shipment. It has been noted that the previous management ordered 1,500 bottles at a time.
Question 1: Culinary Harmony (continued) What is the optimal number of bottles of olive oil to order to minimize the overall holding and ordering costs?
Question 2: Culinary Harmony (continued) The manager has been using an order size of 1,500 bottles of olive oil. What additional annual holding and order cost has the manager been paying compared to the optimal annual holding and order cost?
Question 3: Culinary Harmony (continued) Signature Cocktail Inventory The restaurant's Signature Cocktail experiences variable demand but has a loyal following. The demand follows a normal distribution with a mean of 200 orders per week and a standard deviation of 10 orders. The cost to prepare each cocktail is $2, and it sells for $8. The perishable nature of the cocktail's ingredients means that unsold cocktails cannot be stored for the following week. week? What is the optimal number of servings of the Signature Cocktail to prepare in advance each?