b) T & G Beverage is a distributor of beer, wine and soft drink products. From...
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b) T & G Beverage is a distributor of beer, wine and soft drink products. From its main warehouse, T & G supplies nearly 500 retail stores with beverage products. The beer inventory averages 100,000 cases with an annual demand for this product of 190,000. The average cost per case of beer is $10.00. T & G estimates that the annual holding cost per case of beer is $5.00. T & G is paying $50 per order regardless of the quantity requested in the order. The company operates 300 days per year with a lead time for a new order of 4 days. Calculate and interpret the following inventory control measures: (i) (!!) Economic Order Quantity The Number of Orders to be Made The Average Inventory Annual Holding Costs (iii) (iv) (v) (vi) Reorder Point (vii) Cycle Time (Days) Annual Ordering Costs b) T & G Beverage is a distributor of beer, wine and soft drink products. From its main warehouse, T & G supplies nearly 500 retail stores with beverage products. The beer inventory averages 100,000 cases with an annual demand for this product of 190,000. The average cost per case of beer is $10.00. T & G estimates that the annual holding cost per case of beer is $5.00. T & G is paying $50 per order regardless of the quantity requested in the order. The company operates 300 days per year with a lead time for a new order of 4 days. Calculate and interpret the following inventory control measures: (i) (!!) Economic Order Quantity The Number of Orders to be Made The Average Inventory Annual Holding Costs (iii) (iv) (v) (vi) Reorder Point (vii) Cycle Time (Days) Annual Ordering Costs
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To calculate the inventory control measures we will use the formulas associated with the Economic Or... View the full answer
Related Book For
Statistics For Business And Economics
ISBN: 9780538481649
11th Edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams
Posted Date:
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