Question: A beer distributor finds that it sells on average 1 0 0 cases a week of regular 1 2 - oz . Budweiser. For this
A beer distributor finds that it sells on average cases a week of regular oz Budweiser. For this problem assume that demand occurs at a constant rate over a week year. The distributor currently purchases beer every two weeks at a cost of $ per case. The inventoryrelated holding cost capital insurance, etc. for the distributor equals percent of the dollar value of inventory per year. Each order placed with the supplier costs the distributor $ This cost includes labor, forms, postage, and so forth. c Assume the brewer is willing to give a percent quantity discount if the distributor orders cases or more at a time. If the distributor is interested in minimizing its total cost ie purchase and inventoryrelated costs should the distributor begin ordering or more cases at a time? pts
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