Problem 14-1 (Algorithmic)

Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3050 cases. A case of the soft drink costs R&B $4. Ordering costs are $25 per order and holding costs are 20% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy:

1. Economic order quantity. If required, round your answer to two decimal places. Q^* =
2. Reorder point. r =
3. Cycle time. If required, round your answer to two decimal places. T = days
4. Total annual cost. If required, round your answer to two decimal places. TC = $