Question: ( Hint - this is an EPQ, not a pure EOQ model ) ( Please use excel and take a picture of results and put
Hint this is an EPQ, not a pure EOQ modelPlease use excel and take a picture of results and put them in answer section
The Union Street Microbrewery makes The Union Forever beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $ to set up brew, and bottle a batch of the beer. The annual cost to store the beer in inventory is $ per bottle. The annual demand for the beer is bottles, and the brewery has the effective capacity to produce bottles annually days
a What is the optimal order size?
b What is the minimum total annual inventory cost?
c If the microbrewery has only enough storage space to hold a maximum of bottles of beer in cycle inventory, how will that effect total inventory costs?
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