Given the following data, calculate the optimal order quantity, reorder point and cycle time Annual demand D

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Question:

Given the following data, calculate the optimal order quantity, reorder point and cycle time
Annual demand D = 20,000 cases
Purchase price C = $12 per case
Inventory carrying cost rate i = 18%
Order cost C o = $38 per order
Number of working days per year N = 250
Delivery time = 3 days