Question: Variable Mean Demand 500 cans per week Lead Time 3 days Holding Cost 20% of item value per unit per year Ordering Cost $2.50 per
Variable Mean Demand 500 cans per week Lead Time 3 days Holding Cost 20% of item value per unit per year Ordering Cost $2.50 per order Price $0.20 per can Operating Days 365 days per year d. Say that the manager of HEB does not want to order the amount specified in the Economic Order Quantity, and instead decides to order 5,000 units every time they place and order. In this scenario, please find the expected time between orders, the reorder point (with constant demand and lead time, same as part B), and the cost of managing inventory. Which cost is higher than in part B: total holding costs or total ordering costs? Why do you think
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