At Buckeye Coffee Distributors $($BCD$),$ the annual demand for coffee is $500,000$ bags, the order cost is $$250,$ and the purchase cost is $$80$ per bag. The cost of carrying inventory is $30\%$ of the item cost. Based on current practice, BCD orders coffee $30$ times per year. They distribute their coffee from two facilities, one in Columbus and one in Salt Lake City, and carries about $20\mathrm{.}000$ bags of coffee on$-$hand at a given time.

What would the inventory impact be if BCD were to add two additional facilities to their network?

Answer rating: 100% (QA)

To determine the inventory impact of adding two additional facilities to BCDs network we need to cal... View the full answer