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 $1700 to set up, brew, and bottle a batch of the beer. The annual cost to store the beer in inventory is $1.25 per bottle. The annual demand for the beer is 21,000 bottles and the brewery has the capacity to rpduce 30,00 bottles annually.
a. What is the optimal order quantity? Round to 2 decimal places.
b. What is the total annual inventory cost? Round to 2 decimal places.
c. What is the number of production per year? Round to 2 decimal places.
d. What is the maximum inventory level? Round to 2 decimal places.
e. If the microbrewery has only enogut storage space to holf a maximum of 2500 bottles of beer in inventory, what will be the new total inventory costs? Round to 2decimal places.
Use Operations Management to solve.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!