Question: The oldle towne microbrewery makes townside beer, which it takes and sells in its adjoining resturant and by the case. It costs $ 1 7
The oldle towne microbrewery makes townside beer, which it takes and sells in its adjoining resturant 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 capacity to rpduce bottles annually.
a What is the optimal order quantity? Round to decimal places.
b What is the total annual inventory cost? Round to decimal places.
c What is the number of production per year? Round to decimal places.
d What is the maximum inventory level? Round to decimal places.
e If the microbrewery has only enogut storage space to holf a maximum of bottles of beer in inventory, what will be the new total inventory costs? Round to decimal places.
Use Operations Management to solve.
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