Suppose that the R& B Beverage Company has a soft drink product that shows a constant annual
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Question:
Suppose that the R& B Beverage Company has a soft drink product that shows a constant annual demand rate of 3600 cases.
A case of the soft drink costs R& B $ 3. Ordering costs are $ 20 per order and holding costs are 25% of the value of the inventory. R& B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy:
a. Economic order quantity
b. Reorder point
c. Cycle time
d. Total annual cost
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
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