As an intern at Abilene Cracker Distribution Company $($ACDC$),$ you have been asked to analyze the inventory policies for the company's single$-$serve two$-$cracker packages distributed across Texas, New Mexico and Oklahoma.

Your manager provided you the following worksheet to complete:

$($Your manager provided helpful equations at the bottom of the worksheet $C^C)$

For all questions show your work.

Part A: EOQ, TAC,...

Average demand: $75,000$ cases of crackers per year $($demand and lead time uncertainty will be addressed in part B$)$:

Cracker cost: $$5\mathrm{.}50$ per case

Each order delivery cost: $$250$

Carrying cost: $26\%($Money spent on crackers has an alternative investment with annual interest of $26\%)$

What do you expect the average number of days between single$-$serve cracker package cases will be$?($no need to round$)$

Answer