Question: 1. A softdrinks distributor which buys in a pre-sell basis, is discussing with the route salesmen on the proper cases to be ordered and the

1. A softdrinks distributor which buys in a pre-sell basis, is discussing with the route salesmen on the proper cases to be ordered and the frequency of call. From the route book and other records, the following are available: prior years purchases, 50,000 cases; carrying cost per case of inventory, P1.20; distributors discount, 1 case for every 10 cases bought; cost of placing an order, P3.00; weekly demand is approximately 962 cases. Safety stock required is 140 cases. No change in demand is expected this year. (Use a 365-day, 52-week year). What is the economic order quantity (EOQ), and the reorder point assuming a two-day lead-time?

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