The local distributor for Macho Heavy Beer is reconsidering its inventory policy now that only kegs will
Question:
Lead- Time Demand ( Kegs) Probability
a. Recommend an EOQ for Macho Heavy Beer.
b. If orders are placed in carload lots of 200 kegs, the brewery is willing to give the local distributor a $ 0.25 discount on the wholesale price of each keg. Based on analysis of total variable inventory costs, is this offer attractive?
c. What is the recommended safety stock if Macho decides on an 85 percent service level?
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Related Book For
Service Management Operations Strategy Information Technology
ISBN: 978-0077841201
8th edition
Authors: James Fitzsimmons, Mona Fitzsimmons, Sanjeev Bordoloi
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