Question: 58. 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


58. 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 year's purchases, 50,000 cases; carrying cost per case of inventory, P1.20; distributor's discount, 1 case for every 10 cases bought; cost of placing an order, P300; 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). A. B. C. D. E00 250 cases 481 cases 500 cases 962 cases Reorder point 280 cases 500 cases 414 cases 275 cases
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