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 100 cases a week of regular 12-oz. Budweiser. For this problem assume that demand occurs at a constant rate over a 50 week year. The distributor currently purchases beer every two weeks at a cost of $12 per case. The inventory-related holding cost (capital, insurance, etc.) for the distributor equals 33 percent of the dollar value of inventory per year. Each order placed with the supplier costs the distributor $9. This cost includes labor, forms, postage, and so forth. (c) Assume the brewer is willing to give a 9 percent quantity discount if the distributor orders 640 cases or more at a time. If the distributor is interested in minimizing its total cost (i.e., purchase and inventory-related costs), should the distributor begin ordering 640 or more cases at a time? (2pts)

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