Question: A beer distributor finds that it sells, on average, 1 0 0 cases a week of Xinjiang Black Beer. For this problem assume that demand
A beer distributor finds that it sells, on average, cases a week of Xinjiang Black Beer. For this problem assume that demand occurs at a constant rate over a week year. Beer is purchased at a price of $ per case. The inventoryrelated holding cost rate is Each order placed with the supplier costs the distributor $ Questions For each question select the choice CLOSEST to your answer
What order quantity Q minimizes the distributors total inventoryrelated costs?
a cases
b cases
c cases
d cases
What is the expected number of orders that the distributor will place in a year?
a orders
b orders
c orders
d Cannot be determined from the information given
What is the average inventory level that the distributor can expect?
a cases
b cases
c cases
d Cannot be determined from the information given
What is the inventoryrelated annual total cost?
a $
b $
c $
d Cannot be determined from the information given
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
